11 U.S.C. § 523 : US Code - Section 523: Exceptions to discharge

Search 11 U.S.C. § 523 : US Code - Section 523: Exceptions to discharge

(a) A discharge under section 727, 1141, 1228(a), 1228(b), or
1328(b) of this title does not discharge an individual debtor from
any debt -
(1) for a tax or a customs duty -
(A) of the kind and for the periods specified in section
507(a)(3) or 507(a)(8) of this title, whether or not a claim
for such tax was filed or allowed;
(B) with respect to which a return, or equivalent report or
notice, if required -
(i) was not filed or given; or
(ii) was filed or given after the date on which such
return, report, or notice was last due, under applicable law
or under any extension, and after two years before the date
of the filing of the petition; or
(C) with respect to which the debtor made a fraudulent return
or willfully attempted in any manner to evade or defeat such
tax;
(2) for money, property, services, or an extension, renewal, or
refinancing of credit, to the extent obtained by -
(A) false pretenses, a false representation, or actual fraud,
other than a statement respecting the debtor's or an insider's
financial condition;
(B) use of a statement in writing -
(i) that is materially false;
(ii) respecting the debtor's or an insider's financial
condition;
(iii) on which the creditor to whom the debtor is liable
for such money, property, services, or credit reasonably
relied; and
(iv) that the debtor caused to be made or published with
intent to deceive; or
(C)(i) for purposes of subparagraph (A) -
(I) consumer debts owed to a single creditor and
aggregating more than $500 for luxury goods or services
incurred by an individual debtor on or within 90 days before
the order for relief under this title are presumed to be
nondischargeable; and
(II) cash advances aggregating more than $750 that are
extensions of consumer credit under an open end credit plan
obtained by an individual debtor on or within 70 days before
the order for relief under this title, are presumed to be
nondischargeable; and
(ii) for purposes of this subparagraph -
(I) the terms "consumer", "credit", and "open end credit
plan" have the same meanings as in section 103 of the Truth
in Lending Act; and
(II) the term "luxury goods or services" does not include
goods or services reasonably necessary for the support or
maintenance of the debtor or a dependent of the debtor.
(3) neither listed nor scheduled under section 521(1) of this
title, with the name, if known to the debtor, of the creditor to
whom such debt is owed, in time to permit -
(A) if such debt is not of a kind specified in paragraph (2),
(4), or (6) of this subsection, timely filing of a proof of
claim, unless such creditor had notice or actual knowledge of
the case in time for such timely filing; or
(B) if such debt is of a kind specified in paragraph (2),
(4), or (6) of this subsection, timely filing of a proof of
claim and timely request for a determination of
dischargeability of such debt under one of such paragraphs,
unless such creditor had notice or actual knowledge of the case
in time for such timely filing and request;
(4) for fraud or defalcation while acting in a fiduciary
capacity, embezzlement, or larceny;
(5) for a domestic support obligation;
(6) for willful and malicious injury by the debtor to another
entity or to the property of another entity;
(7) to the extent such debt is for a fine, penalty, or
forfeiture payable to and for the benefit of a governmental unit,
and is not compensation for actual pecuniary loss, other than a
tax penalty -
(A) relating to a tax of a kind not specified in paragraph
(1) of this subsection; or
(B) imposed with respect to a transaction or event that
occurred before three years before the date of the filing of
the petition;
(8) unless excepting such debt from discharge under this
paragraph would impose an undue hardship on the debtor and the
debtor's dependents, for -
(A)(i) an educational benefit overpayment or loan made,
insured, or guaranteed by a governmental unit, or made under
any program funded in whole or in part by a governmental unit
or nonprofit institution; or
(ii) an obligation to repay funds received as an educational
benefit, scholarship, or stipend; or
(B) any other educational loan that is a qualified education
loan, as defined in section 221(d)(1) of the Internal Revenue
Code of 1986, incurred by a debtor who is an individual;
(9) for death or personal injury caused by the debtor's
operation of a motor vehicle, vessel, or aircraft if such
operation was unlawful because the debtor was intoxicated from
using alcohol, a drug, or another substance;
(10) that was or could have been listed or scheduled by the
debtor in a prior case concerning the debtor under this title or
under the Bankruptcy Act in which the debtor waived discharge, or
was denied a discharge under section 727(a)(2), (3), (4), (5),
(6), or (7) of this title, or under section 14c(1), (2), (3),
(4), (6), or (7) of such Act;
(11) provided in any final judgment, unreviewable order, or
consent order or decree entered in any court of the United States
or of any State, issued by a Federal depository institutions
regulatory agency, or contained in any settlement agreement
entered into by the debtor, arising from any act of fraud or
defalcation while acting in a fiduciary capacity committed with
respect to any depository institution or insured credit union;
(12) for malicious or reckless failure to fulfill any
commitment by the debtor to a Federal depository institutions
regulatory agency to maintain the capital of an insured
depository institution, except that this paragraph shall not
extend any such commitment which would otherwise be terminated
due to any act of such agency;
(13) for any payment of an order of restitution issued under
title 18, United States Code;
(14) incurred to pay a tax to the United States that would be
nondischargeable pursuant to paragraph (1);
(14A) incurred to pay a tax to a governmental unit, other than
the United States, that would be nondischargeable under paragraph
(1);
(14B) incurred to pay fines or penalties imposed under Federal
election law;
(15) to a spouse, former spouse, or child of the debtor and not
of the kind described in paragraph (5) that is incurred by the
debtor in the course of a divorce or separation or in connection
with a separation agreement, divorce decree or other order of a
court of record, or a determination made in accordance with State
or territorial law by a governmental unit;
(16) for a fee or assessment that becomes due and payable after
the order for relief to a membership association with respect to
the debtor's interest in a unit that has condominium ownership,
in a share of a cooperative corporation, or a lot in a homeowners
association, for as long as the debtor or the trustee has a
legal, equitable, or possessory ownership interest in such unit,
such corporation, or such lot, but nothing in this paragraph
shall except from discharge the debt of a debtor for a membership
association fee or assessment for a period arising before entry
of the order for relief in a pending or subsequent bankruptcy
case;
(17) for a fee imposed on a prisoner by any court for the
filing of a case, motion, complaint, or appeal, or for other
costs and expenses assessed with respect to such filing,
regardless of an assertion of poverty by the debtor under
subsection (b) or (f)(2) of section 1915 of title 28 (or a
similar non-Federal law), or the debtor's status as a prisoner,
as defined in section 1915(h) of title 28 (or a similar non-
Federal law);
(18) owed to a pension, profit-sharing, stock bonus, or other
plan established under section 401, 403, 408, 408A, 414, 457, or
501(c) of the Internal Revenue Code of 1986, under -
(A) a loan permitted under section 408(b)(1) of the Employee
Retirement Income Security Act of 1974, or subject to section
72(p) of the Internal Revenue Code of 1986; or
(B) a loan from a thrift savings plan permitted under
subchapter III of chapter 84 of title 5, that satisfies the
requirements of section 8433(g) of such title;
but nothing in this paragraph may be construed to provide that
any loan made under a governmental plan under section 414(d), or
a contract or account under section 403(b), of the Internal
Revenue Code of 1986 constitutes a claim or a debt under this
title; or
(19) that -
(A) is for -
(i) the violation of any of the Federal securities laws (as
that term is defined in section 3(a)(47) of the Securities
Exchange Act of 1934), any of the State securities laws, or
any regulation or order issued under such Federal or State
securities laws; or
(ii) common law fraud, deceit, or manipulation in
connection with the purchase or sale of any security; and
(B) results, before, on, or after the date on which the
petition was filed, from -
(i) any judgment, order, consent order, or decree entered
in any Federal or State judicial or administrative
proceeding;
(ii) any settlement agreement entered into by the debtor;
or
(iii) any court or administrative order for any damages,
fine, penalty, citation, restitutionary payment, disgorgement
payment, attorney fee, cost, or other payment owed by the
debtor.
For purposes of this subsection, the term "return" means a return
that satisfies the requirements of applicable nonbankruptcy law
(including applicable filing requirements). Such term includes a
return prepared pursuant to section 6020(a) of the Internal Revenue
Code of 1986, or similar State or local law, or a written
stipulation to a judgment or a final order entered by a
nonbankruptcy tribunal, but does not include a return made pursuant
to section 6020(b) of the Internal Revenue Code of 1986, or a
similar State or local law.
(b) Notwithstanding subsection (a) of this section, a debt that
was excepted from discharge under subsection (a)(1), (a)(3), or
(a)(8) of this section, under section 17a(1), 17a(3), or 17a(5) of
the Bankruptcy Act, under section 439A (!1) of the Higher Education
Act of 1965, or under section 733(g) (!1) of the Public Health
Service Act in a prior case concerning the debtor under this title,
or under the Bankruptcy Act, is dischargeable in a case under this
title unless, by the terms of subsection (a) of this section, such
debt is not dischargeable in the case under this title.
(c)(1) Except as provided in subsection (a)(3)(B) of this
section, the debtor shall be discharged from a debt of a kind
specified in paragraph (2), (4), or (6) of subsection (a) of this
section, unless, on request of the creditor to whom such debt is
owed, and after notice and a hearing, the court determines such
debt to be excepted from discharge under paragraph (2), (4), or
(6), as the case may be, of subsection (a) of this section.
(2) Paragraph (1) shall not apply in the case of a Federal
depository institutions regulatory agency seeking, in its capacity
as conservator, receiver, or liquidating agent for an insured
depository institution, to recover a debt described in subsection
(a)(2), (a)(4), (a)(6), or (a)(11) owed to such institution by an
institution-affiliated party unless the receiver, conservator, or
liquidating agent was appointed in time to reasonably comply, or
for a Federal depository institutions regulatory agency acting in
its corporate capacity as a successor to such receiver,
conservator, or liquidating agent to reasonably comply, with
subsection (a)(3)(B) as a creditor of such institution-affiliated
party with respect to such debt.
(d) If a creditor requests a determination of dischargeability of
a consumer debt under subsection (a)(2) of this section, and such
debt is discharged, the court shall grant judgment in favor of the
debtor for the costs of, and a reasonable attorney's fee for, the
proceeding if the court finds that the position of the creditor was
not substantially justified, except that the court shall not award
such costs and fees if special circumstances would make the award
unjust.
(e) Any institution-affiliated party of an insured depository
institution shall be considered to be acting in a fiduciary
capacity with respect to the purposes of subsection (a)(4) or (11).