Title 11 U.S.C. §524 applies to discharges under several chapters including Chapters 7 and Chapter 13. The full text of §524 will not be covered here but I hope to include the most important parts pertaining to Chapters 7 & 13.
§524(a)(2) operates as an injunction against actions (including lawsuits) or any act to collect, recover or offset any debt that got discharged as a personal liability against the debtor.
§524(b)(3) operates as a similar injunction against actions to recover community property acquired after the bankruptcy case was filed, unless the subject community property was excepted from discharge. There are several exception to this rule. Florida is not a community property state and consequently, I have little to say about this subsection. Seek competent counsel on this if you live in a community property state.
§534(c) applies to reaffirmation agreements. We use these in Chapter 7. The most common example used in my office is a reaffirmation agreement concerning a motor vehicle but such agreements are not restricted to this type of debt. Frequently, a Chapter 7 debtor has a car that they owe money on but want to keep. Assume that they owe as much or more than the vehicle is worth so that we don't have to deal with equity that may be bankruptcy estate property. The Trustee abandons the vehicle for lack of equity and the debtor enters into a formal agree to make payments to the creditor so that the debtor can keep the vehicle. The debtor has some protection built into the code on this including the right to rescind within 60 days of entering into the agreement or entry of discharge, whichever is later.
Debts that might not get discharged
Title 11 U.S.C. §523 applies to discharges entered under several chapters of the Bankruptcy Code but this site is concerned only with voluntary cases filed under Chapters 7 or 13, both of which are effected by §523. A brief listing by types of debt that made it into the list of debts excepted from discharge is provided. Some of the debts listed are restricted and require certain facts to exist before such debt would not be discharged. The list is provided to give the reader an idea about debts that may be included in a problem area.
1. Income Taxes
2. Debts resulting from fraud, false pretenses or false representations or consumer debts for luxury goods or services incurred close in time to filing the bankruptcy
3. Debts that did not get listed in the bankruptcy paper work (there is a duty to list ALL debts)
4. Debts related to fraud or defalcation of duty while acting in a fiduciary capacity
5. Domestic support obligations
6. Debts arising from Willful AND Malicious injury to another or property of another
7. Fines, forfeitures, or penalties, other than a tax penalty, owed to a government
8. Student loans or educational benefit overpayment
9. Debts arising fro death or personal injury caused by operation of a motor vehicle, vessel or aircraft while intoxicated.
10. Debts that were or could have been subject to a prior bankruptcy in which the debtor was denied discharge or waived discharge.
11. Debts related to fraud or defalcation while acting in a fiduciary of a depository or insured credit union
12. Malicious or reckless failure to fulfill a comitment to maintain the capital of an insured depository institution
13. Restitution order issued under Title 18 U.S.C.
14. Debts incurred to pay a tax that would have been non-dischargeable
15. Debts owed to a spouse, former spouse or child of the debtor incurred in a divorce or separation agreement
16. Post petition home owners association fees or assessments
17. Fees imposed on prisoners in connection with legal proceedings
18. Debts owed to a tax deferred plan.
19. Certain debts arising from securities law.