Any person, and almost any partnership, corporation, or business trust may file a bankruptcy petition. Certain types of entities, such as banks and insurance companies, may not be eligible for bankruptcy protection, but almost all other entities who are not individuals can file under either Chapter 7, Chapter 11, or Chapter 12. A business that is not a partnership, corporation, or business trust, cannot file a separate bankruptcy petition on its own, but must be filed as an individual bankruptcy under the name(s) of the owner(s).

If the person or entity who owes the debts (the debtor) files the petition, it is called a voluntary petition. A voluntary petition can be filed under Chapter 7, 9, 11, 12, or 13 .

The people or entities that are owed money (the creditors) may also have the right to file a petition against a person or entity which owes them money, and is not paying. This is called an involuntary petition. There are certain restrictions upon the creditors ability to file an involuntary petition. In an involuntary case, the debtor is allowed to contest the petition and contend that it should not be in bankruptcy. The Court can impose penalties against the creditors who filed the case if the debtor proves that the involuntary petition should not have been filed. An involuntary petition cannot be filed against joint debtors, and can be filed only under Chapter 7 or Chapter 11 (11 USC §303).

Only a family farmer or family fisherman may file a Chapter 12 petition. In addition, there are certain debt limitations in a Chapter 12 case. See 11 USC §101(18) and (19A).

In accordance with §342(b) of the Bankruptcy Code, this notice: (1) Describes briefly the services available from credit counseling services; (2) Describes briefly the purposes, benefits and costs of the four types of bankruptcy proceedings you may commence; and (3) Informs you about bankruptcy crimes and notifies you that the Attorney General may examine all information you supply in connection with a bankruptcy case. You are cautioned that bankruptcy law is complicated and not easily described. Therefore, you should seek the advice of an attorney to learn of your rights and responsibilities under the law should you decide to file a petition with the court. If you need an attorney, the Oregon State Bar's Lawyer Referral Service number is 1-800-452-7636. Court employees are prohibited from giving you legal advice.

A. Services Available from Credit Counseling Agencies

With limited exceptions, §109(h) of the Bankruptcy Code requires that all individual debtors who file for bankruptcy relief on or after October 17, 2005 receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing. The briefing may be provided individually or in a group (including briefings conducted by telephone or on the Internet), and must be provided by a nonprofit budget and credit counseling agency approved by the United States Trustee. For a list of approved agencies, see the U.S. Trustee's website at www.usdo j.gov/ust.

Services can include (1) budget counseling, (2) debt management services, (3) debt settlement, (4) credit education and correction services, (5) housing advising services, (6) financial education, and/or (7) income tax preparation.

In addition, after filing a bankruptcy case, an individual debtor generally must complete a financial management instructional course before he or she can receive a discharge. Also see the U.S.Trus tee's website for a list of approved financial management instructional courses.

B. The Four Chapters of the Bankruptcy Code Available to Individual Consumer Debtors

Chapter 7: Liquidation (See Court Fees List for filing fee)

1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a means test designed to determine whether the case should be permitted to proceed under Chapter 7. In addition, if your income is greater than the median income for your state of residence and family size, in some cases, creditors have a right to file a motion requesting that the court dismiss your case under §707(b) of the Code. It is up to the court to decide whether the case should be dismissed.

2. Under Chapter 7, you may claim certain property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.

3. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.

4. Even if you receive a general discharge , some particular debts are not dischargeable under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.

Chapter 11: Reorganization (See Court Fees List for filing fee)

Chapter 11 is primarily designed for the reorganization of a business, but is also available to individual debtors. Its provisions are quite complicated, and any decision by an individual to file a Chapter 11 petition should be reviewed with an attorney.

Chapter 12: Family Farmer or Fisherman (See Court Fees List for filing fee)

Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to Chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.

Chapter 13 : Repayment of All or Part of the Debts of an Individual with Regular Income ( See Court Fees List for filing fee)

1. Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.

2. Under Chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.

3. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations.

C. Bankruptcy Crimes and Availability of Bankruptcy Papers to Law Enforcement Officials

A person who knowingly and fraudulently conceals assets, or makes a false oath or statement under penalty of perjury, either orally or in writing, in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees of the Department of Justice.

WARNING : Section 521(a)(1) of the Bankruptcy Code requires that you promptly file detailed information regarding your creditors, assets, liabilities, income, expenses and general financial condition. Your bankruptcy case may be dismissed if this information is not filed with the court within the time deadlines set by the Bankruptcy Code, the Bankruptcy Rules, and the local rules of the court.

Depending on a debtor's financial condition and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. The timing of the filing may be very important, and those considering bankruptcy should be aware of the following:

1. Filing for bankruptcy protection is not free. See response to FAQ (How much are the court fees to file a bankruptcy?).

2. Not all debts are dischargeable. For example, most domestic support obligations, most tax debts, and most student loan debts are not dischargeable. See response to FAQ (What is a bankruptcy discharge and what is the difference between denial of discharge and denial of the dischargeability of an individual debt?)

3. Within 14 days of the filing of a bankruptcy petition, schedules of the debtor's assets and liabilities must be filed with the Court. Failure to timely file the appropriate schedules will result in a dismissal of the bankruptcy case, and may bar the debtor from filing again for 180 days (6 months).

4. The Bankruptcy Code imposes time limitations on successive discharges as follows:

A. If a Chapter 7 or 11 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 7 case (filed on or after 10/17/05) filed within eight years of the filing of the first case.

B. If a Chapter 7 or 11 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 7 case (filed prior to 10/17/05) filed within six years of the filing of the first case.

C. If a Chapter 7, 11, or 12 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 13 case (filed on or after 10/17/05) filed within four years of the filing of the first case.

D. If a Chapter 13 discharge is entered by the Court, the debtor is prohibited from being granted a discharge in a later-filed Chapter 13 case (filed on or after 10/17/05) filed within two years of the filing of the first case.

E. If a Chapter 12 or 13 discharge is entered by the Court, the debtor is prohibited from being granted a discharge in a later-filed Chapter 7 case filed within six years of the filing of the first case, unless (a) the debtor paid 100% of allowed unsecured claims in the Chapter 12 or 13 case, or (b) the debtor paid at least 70% of the allowed unsecured claims in the Chapter 12 or 13 case, the plan was proposed in good faith, and was the debtor's best effort.

5. Submission of fraudulent information, or commission of certain acts by the debtor can also be grounds for the denial of discharge of an individual debt, or for the denial of the discharge of all debts, and can also give rise to criminal charges. See response to FAQ(What is a bankruptcy discharge and what is the difference between denial of discharge and denial of the dischargeability of an individual debt?).

6. In some instances, transfers of property and/or payments made to (1) general creditors within ninety days prior to the filing of a bankruptcy petition, and/or (2) relatives within one year prior to the filing of a bankruptcy petition, are subject to being recovered by the bankruptcy trustee.

7. If the debtor is seeking to discharge utility bills from a utility company currently providing service to the debtor, the utility company may terminate services if the debtor does not pay a reasonable security deposit or provide other adequate assurance of payment within 20 days of the filing of the bankruptcy petition.

8. Depending on the timing of the filing of the bankruptcy petition, and what chapter of bankruptcy is filed, the debtor can be required to turn over state and federal tax refunds may be collected to the bankruptcy trustee.

As a general rule, there is no statutory prohibition against an individual filing another bankruptcy at any time. However, the court could enter such an order (for example if you are found to be abusing the system by repeatedly filing cases solely for purposes of delay). Additionally, the Bankruptcy Code [11 USC §109(g)] does provide that you may have to wait 180 days (6 months) to refile if either: (a) your previous case was dismissed for willful failure to abide by orders of the court (possible examples could include the failure to pay filing fees, to file required documents, or to complete the first meeting of creditors), or (b) if your case was dismissed on your request after a creditor filed a motion for relief from the automatic stay. In addition, there are certain prohibitions against receiving another chapter 7 discharge in specific circumstances. See 11 USC §727(8) and (9).

Subsection (8) prohibits entry of a chapter 7 discharge in a case filed prior to 10/17/05 if you received a discharge in a chapter 7 or 11 case filed within six (6) years of the filing of the new case. For cases filed on or after 10/17/05 , the period between successive chapter 7 discharges is eight (8) years.

Subsection (9) prohibits entry of a chapter 7 discharge if you received a discharge in a chapter12 or 13 case commenced within six years of the chapter 7 filing unless payments under the plan totaled either 100% of allowed unsecured claims or at least 70% of the unsecured claims if the plan was proposed in good faith and was the debtor's best effort.

Moreover, under 11 USC §1328(f)(1) and (2), a discharge cannot be entered in a chapter 13 case filed on or after 10/17/05 if the debtor (1) has received a discharge in a chapter 7, 11, or 12 case filed within four years of the chapter 13 filing, or (2) has received a discharge in a chapter 13 case filed within 2 years of the new chapter 13 case. In a chapter 13 case filed prior to 10/17/05 , there is no statutory prohibition to receiving a discharge based upon prior bankruptcy filings.

For other things that should be considered before actually filing another bankruptcy petition, see Who Can Start a Bankruptcy? and What are the Consequences of Filing for Bankruptcy?

Only an individual may file a Chapter 13 petition. As with Chapter 12 cases, there are debt limitations in a Chapter 13 case. See 11 USC §109(e).

A Chapter 9 case is a rarely-filed case by a municipality seeking to adjust its debts.

For other things that should be considered before actually filing a bankruptcy petition, see (When may I file bankruptcy again?) and (What are the consequences of filing for bankruptcy?).

While it is possible for an individual to file a bankruptcy case "pro se", that is, without the assistance of an attorney, it may be difficult to do so successfully. Click here for some important general information about filing for bankruptcy without an attorney.

As noted in the general information, it is recommended that a person considering bankruptcy consult with a competent attorney prior to filing a case. For information about lawyer referral programs, contact the Oregon State Bar at (503) 684-3763 in the Portland metropolitan area or 1-800-452-7636 if calling from other areas.

NOTE: Any entity other than an individual (i.e., corporation, partnership, trust, LLC, LLP, conservatorship, guardianship, etc.) must be represented by an attorney.

1. The Oregon State Bar has a Lawyer Referral program which will direct you to an attorney who has agreed to provide limited consultation at reduced rates. The Oregon State Bar Lawyer Referral Program can be contacted by calling 503-684-3763 in the Portland metropolitan area or 1-800-452-7636 if calling from other areas.

2. In Portland, the Lewis & Clark Legal Clinic provides services of law school students under the supervision of an attorney to low income clients. Their office can be reached by calling 503-768-6500.

3. Multnomah, Yamhill, Washington, Clackamas & Columbia Counties - If you are low income and live in Multnomah, Yamhill, Washington, Clackamas or Columbia Counties, you can call the legal aid office for your county and, if you meet the income and asset guidelines, they will schedule you for an appointment to meet with a volunteer lawyer immediately after you attend one of the Bankruptcy Clinic classes described below.

In Multnomah or Yamhill County: Call Multnomah County Legal Aid Service at (503)-224-4086.

In Washington, Clackamas or Columbia County: Call Oregon Legal Services (Hillsboro office) at (503)-648-7163.

4. The Debtor-Creditor Section of the Oregon State Bar in cooperation with Legal Aid and the Lewis & Clark Legal Clinic has a Bankruptcy Clinic. Anyone who is thinking about filing a consumer chapter 7 can come to the class but only those low income people who have separately made an appointment through the Legal aid offices will receive individual help from their volunteer attorney after the class. Click here for further information on the Bankruptcy Clinic.

As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 which became effective on October 17, 2005, a "means test" has been instituted to determine whether or not a debtor is entitled to a Chapter 7 discharge, or whether such debtor must convert the case to one under another chapter of the Bankruptcy Code. The basic purpose of the means test is to compare monthly income and expenses to determine whether or not a Chapter 7 discharge would constitute an "abuse" of the provisions related to Chapter 7 in the Bankruptcy Code.

Means testing is only applicable to debtors whose annualized current income exceeds the median family income for the state of residence and family size involved. Such median income figures can be obtained from the U.S. Trustee's web site. In calculating income for means testing, however, average income for the six months immediately prior to the filing of the bankruptcy petition is used as opposed to actual or projected income at the time of filing. Some types of income (e.g., social security benefits) are not included for the means test calculation. With respect to expenses, allowable expenses are to some extent determined by IRS guidelines as opposed to actual expenditures.

NOTE: The amounts shown below are effective as to cases files on and after 4/1/07. These amounts will also be adjusted on 4/1/10 and every 3 years thereafter with respect to cases commenced on or after the date of adjustment.

After subtracting allowable expenses from income, if the monthly disposable income is less than $109.58, no presumption of abuse will exist. If the monthly disposable income is between $109.58 and $182.50, a presumption of abuse will arise only if the debtor can pay at least 25% of the non-priority unsecured debts over five years. On the other hand, if monthly disposable income is greater than $182.50, a presumption of abuse will exist regardless of the amount of the debtor 's non-priority unsecured debts .

Forms for the means test calculation are available on the U. S. Court's web site.

If a debtor "fails" the means test, this does not necessarily mean that such debtor will be precluded from obtaining a Chapter 7 discharge . The debtor has the opportunity to rebut the presumption of abuse by showing documented special circumstances or expenses which prove either that (1) monthly disposable income is less than $109.58 or (2) monthly disposable income is between $109.58 and $182.50 with an inability to pay at least 25% of non-priority unsecured debts . If a presumption of abuse exists, it will be up to some party in interest (e.g., Court, Trustee, U.S. Trustee, or creditor) to file a motion seeking a dismissal of the case, or the conversion to another chapter. If a motion is filed, and the debtor is unable to rebut a presumption of abuse, the debtor will be required to convert the case to either Chapter 11, 12, or 13 (whichever is appropriate), or the case will be dismissed. Moreover, even a debtor not subject to means testing can still have a case dismissed or converted if the Court finds that the petition was filed in bad faith, or if the totality of the circumstances of the debtor's financial situation demonstrates abuse.

The Bankruptcy Court has no jurisdiction over credit reporting agencies. The bankruptcy petition, schedules and plan are public documents and are available to the general public at the Clerk’s Office. Credit reporting agencies regularly collect information from the petitions filed and report the information on their credit reporting services. Under the provisions of the Fair Credit Reporting Act [15 USC §1681c], the fact that an individual filed a bankruptcy can remain on the credit report no longer than 10 years. According to the Consume r Data Industry Association, if a chapter 13 bankruptcy is successfully completed, the credit reporting industry retains the information for only seven years rather than the ten years allowed by law to encourage debtors to file under that chapter.

Bankruptcies may be taken into consideration by any person reviewing a credit report for the purpose of extending credit in the future. The decision whether to grant you credit in the future is strictly up to the creditor and varies from creditor to creditor depending on the type of credit requested. There is no law which prevents anyone from extending credit to you immediately after the filing of a bankruptcy nor will a creditor be required to extend credit to you. However, a chapter 13 debtor is generally prohibited from incurring credit while the case is pending without the approval of the chapter 13 trustee. The best way for you to obtain credit in the future is to generate adequate and regular income and to pay all of your financial obligations in a timely and responsible manner. Many creditors will not deal with you in the future unless you have already established credit with someone else and demonstrated that you are a reliable debtor. In general, it is recommended that, after the filing of a bankruptcy, one learn to live within his/her income and not request credit which is not absolutely necessary. The Federal Trade Commission has a number of educational publications on its web site to help consumers address credit and financial issues.

Bankruptcy Discharge

Unless for some reason a general discharge of debts is denied (see below ), the Court typically enters an order which grants a discharge to the person(s) named as the debtor(s). A discharge in bankruptcy eliminates a debtor's legal obligation to pay debts that are discharged. The granting of a discharge (1) is not a dismissal of the case, (2) does not determine how much money, if any, the trustee will pay to creditors, and (3) does not always automatically result in the closing of a case. All contested matters, some adversary proceedings, and appeals must be resolved, and the appointed trustee or debtor-in-possession must file a Final Report and Account and request entry of a Final Decree before the Clerk's Office will close the case.

Some individual debts are not dischargeable, and the dischargeability of others may be denied, depending on particular circumstances (see below).

The discharge is a permanent injunction which prohibits any attempt to collect from the debtor all debts that have been discharged, except for debts not discharged by the court. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. There are also special rules that protect certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy case. A creditor who violates this order can be held in contempt of court and required to pay damages and attorney fees to the debtor. However, even if a debt is discharged, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the collateral after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case.

Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (If the case was begun under one chapter of the Bankruptcy Code and then converted to a different chapter, the discharge applies to the debts owed when the bankruptcy case was converted.)

In a Chapter 7 case, the discharge is typically entered within 75 days after the §341(a) meeting of creditors. In a Chapter 11 case, the discharge is deemed entered once the debtor' s Chapter 11 Plan has been confirmed (except in an individual Chapter 11 in which discharge is deferred until the debtor completes all plan payments). In Chapter 12 or 13 cases, the discharge is typically entered upon the request of the Trustee following the completion of the debtor's plan payments. Even if a debtor has the legal right to discharge a debt, the debtor can voluntarily repay the debt, formally reaffirm the debt, or redeem collateral which secures a debt.

Denial of Debtor's Discharge And Denial of the Dischargeability of a Particular Debt

A discharge can be denied by the court for either all debts (denial of debtor's discharge) or for one particular debt (denial of the dischargeability of a particular debt). For a discharge to be denied as to all debts, either the debtor must simply not be entitled to a discharge at all by law, or else someone must file an Adversary Complaint (Bankruptcy Court's version of a civil lawsuit) with the court. To deny the dischargeability of a particular debt, either the debt must be non-dischargeable by law, or someone must file an Adversary Complaint with the court seeking to deny the dischargeability of that debt. The following discusses both the denial of debtor's discharge and the denial of the dischargeability of a particular debt.

Denial Of Debtor's Discharge

In the following circumstances, the debtor is not entitled by law to a discharge of any debts, and no party need file an Adversary Complaint seeking to deny the debtor a discharge:

1. The debtor is not an individual (in Chapter 7 cases only);

2. The debtor received a discharge in a Chapter 7 or 11 case filed within eight years prior to the filing of a new Chapter 7 case (six years if the new case was filed prior to 10/17/05), or received a discharge in a Chapter 12 or 13 case within six years prior to the filing of a new Chapter 7 case. See also FAQ When May I File Bankruptcy Again? If the debtor is not entitled to a discharge because of a discharge entered in a prior case, the Court will typically issue a Notice of Intent Not to Grant a Discharge;

3. The debtor has filed, and the Court has approved, a waiver of discharge;

4. The Chapter 11 Plan, or the order confirming the Chapter 11 plan, provides that the debtor is not entitled to a discharge; and/or

5. The Chapter 11 Plan is a liquidating plan, and the debtor would be denied a discharge under 11 U.S.C. §727 had the case been filed under Chapter 7 (for non-individual Chapter 11 debtors only).

Under certain circumstances, the debtor's right to a general discharge can be denied by the Judge. This usually results from some major misconduct on the part of the debtor. In order for a discharge to be denied for any of these reasons, a party in interest (e.g., Trustee or creditor) must file an Adversary Complaint objecting to discharge within sixty days following the first date set for the §341(a) meeting of creditors. The most common examples are as follows:

1. The debtor, with intent to hinder, delay, or defraud a creditor or an officer of the estate, has transferred, removed, destroyed, mutilated, or concealed: (a) property of the debtor within one year prior to the filing of the bankruptcy petition and/or (b) property of the estate after the date of filing of the bankruptcy petition;

2. The debtor has concealed, destroyed, mutilated, falsified, or failed to keep or preserve books and records about the debtor's financial condition and/or business transactions;

3. The debtor has failed to satisfactorily explain a loss of assets;

4. The debtor knowing and fraudulently (a) made a false oath or account, (b) presented or used a false claim, (c) gave money or property to a third party for debtor's advantage, or (d) failed to turn over books and records; and/or

5. The debtor has refused to (a) obey any lawful order of the Court other than an order to respond to a material question or to testify, (b) respond to a material question approved by the Court, or to testify, notwithstanding a claim of self-incrimination, after immunity has been granted, or (c) respond to a material question approved by the Court, or to testify, on a ground other than self-incrimination.

Denial of the Dischargeability of a Particular Debt

As noted above, most debts are dischargeable in bankruptcy. The Bankruptcy Code, however, states that the certain individual debts are not dischargeable, and that the creditor does not need to take any Court action to have such a debt declared non-dischargeable. The most common examples of such debts are:

1. Debts for most taxes;

2. Debts for domestic support obligations or those arising out of a divorce decree or separation agreement (except that non-support marital debt can be discharged in Chapter 13);

3. Debts for most student loans;

4. Debts for most fines, penalties, forfeitures, or criminal restitution;

5. Debts for personal injury or death caused by the debtor's operation of a motor vehicle, vessel, or aircraft while intoxicated;

6. Some debts which were not properly listed on the bankruptcy petition and schedules;

7. Debts for which a Reaffirmation Agreement has been approved;

8. Debts which could have been listed in a prior bankruptcy case;

9. Debts neither listed nor scheduled in time to allow the creditor to file a Proof of Claim;

10. Post-bankruptcy condominium or cooperative owners' association fees; and

11. Debts incurred to pay non-dischargeable state and/or federal tax debt.

The dischargeability of other types of individual debts may be denied if the creditor files, within sixty days after the first date set for the §341(a) meeting of creditors, an Adversary Complaint to deny the dischargeability of the debt. If such a complaint is timely filed, the Judge will ultimately rule as to whether or not the debt will be discharged. If a complaint is not timely filed, the debt will be considered discharged. Such "potentially non-dischargeable" debts include:

1. Debts incurred by fraud, false pretenses, or materially false statements regarding financial condition;

2. Debts incurred as a result of fraud or defalcation while acting in a fiduciary capacity, or for embezzlement or larceny; and

3. Debts incurred for willful and malicious injury by the debtor to another entity or property of another entity (except that such debts can be discharged in Chapter 13).

NOTE: The debtor may receive a discharge even if any complaint to deny the dischargeability of a single debt is still pending. The debt in question will not actually be discharged until the Judge rules on the objection.

CAUTION: These lists include many examples of non-dischargeable debts, but 11 U.S.C. §523 and 11 U.S.C. §1328 should be reviewed for complete lists.

If an individual debtor in a Chapter 11, 12, or 13 case is not able to maintain plan payments to the applicable case trustee, it is possible to file a motion for a "hardship" discharge so that the case can be completed. As a practical matter, the relief obtained by the debtor is quite similar to that obtained by converting the case to one under Chapter 7 in that the debts which are not dischargeable in Chapter 7 are not discharged if the Court approves a hardship discharge in the Chapter 11, 12, or 13 case.

For an individual Chapter 11, 12, or 13 debtor to obtain a hardship discharge, such debtor must show that (1) the amount paid to creditors pursuant to the confirmed Chapter 11, 12, or 13 Plan is at least as much as the creditors would have received had the estate been liquidated as of the effective date of the Plan, and (2) modification of the Plan under §1127, §1229, or §1329 is not practicable. In addition, in a Chapter 12 or 13 case, the debtor must show that the failure to complete plan payments is due to circumstances for which the debtor should not justly be held accountable.

Motions seeking a hardship discharge must be filed using LBF #1378.