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May 29, 2007

Discharge Under Current Bankruptcy Laws

Filed under: Discharge — admin @ 6:35 am

A discharge will be granted or denied pursuant to ยง727, 1141, 1228 or 1328, depending on the chapter in which the case is filed. Even if the debtor receives a general discharge, certain debts may be excluded from that discharge. Section 523 lists the types of debts that may be excepted from discharge. Debts for alimony, maintenance and support (and in cases governed by the 2005 amendments, domestic support obligations) are non-dischargeable in every kind of bankruptcy case.
Under the 2005 amendments, property settlement obligations, as opposed to alimony and support, are dischargeable in chapter 13, but not in chapters 7, 11 and 12. Under prior law, property settlement debts could sometimes be discharged in chapter 7, 11 and 12 if the debtor was unable to pay or if the benefit to the debtor of discharging the debt outweighed the harm discharge would impose on the former spouse. These exceptions are discussed in detail in Chapter IX.
The Bankruptcy Rules that govern objecting to discharge and determining discharge ability of specific debts are Federal Rules of Bankruptcy Procedure 4004, 4005 and 4007. Part VII of the Rules governs procedures for all adversary proceedings in the bankruptcy courts. Those rules generally follow the Federal Rules of Civil Procedure. See Federal Rule of Bankruptcy Procedure 7002. Bankruptcy court applies the Federal rules of Evidence.

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