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Section 523 (a) (7) of the house amendment adopts the position taken in the senate amendment and rejects the position taken in the house bill The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. A penalty relating to a tax cannot be nondischargeable unless the tax itself is nondischargeable.
For purposes of this subsection, the term “ return ” means a return that satisfies the requirements of applicable nonbankruptcy law (including applicable filing requirements). (7) this subsection does not affect the operation of section 1144 or the power of the district court to refer a proceeding under section 157 of title 28 or any reference of a proceeding made prior to the date of the enactment of this subsection. The debt is a fine, penalty, or forfeiture, that is payable to and for the benefit of a governmental unit, and that does not constitute compensation for actual pecuniary costs
Notwithstanding the general availability of the discharge, section 523 of the bankruptcy code specifically enumerates certain debts that are not discharged
A debtor may discharge all other debts in bankruptcy, but those exceptions remain postbankruptcy charges against the debtor. How can debtors navigate 523 (a) exceptions In representing creditors in bankruptcy, one of the best claims to have is a nondischargeable claim That is, a claim that cannot be discharged by the bankruptcy action, but rather which slides through as though the bankruptcy never happened.
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