DISHCARGEABLE: 7 vs. 13 Enquiring minds want to know...?

[anabanana]

Perhaps I am more obtuse than even I am aware.....

Am I reading this right? I find that under Chapter 7, debts meeting the following criteria may not be discharged:

(8) Debts incurred due to false statements made with the intent to deceive
(9) Fraud committed in a fiduciary capacity, such as embezzlement or larceny
(10) Punitive damage claims for "willful and malicious" acts

But under general Chapter 13, I see no exception made for this sort of malfeasance. Does this mean you can commit deliberately bad acts and ten BK under Chapter 13 and thereby get away with such acts? JETX, Guru, Lady, Blondie, ANYONE?


ana

[Ladynred]

The difference is, in CH 13 you PAY BACK your creditors, you don't duck out. In some cases, unsecured creditors get nothing or a very small percentage. So, those types of debts that are NOT dischargable in CH 7, get added to the CH 13 Plan and they get PAID... they still don't get discharged and in most cases, if the plan is completed and there is still money owing on that type of debt, you are STILL required to keep paying it - so you don't get out of it at all.

[anabanana]

Thanks for your reply, Ladynred, but now I'm even more confused.



>>those types of debts that are NOT dischargable in CH 7, get added to the CH 13 Plan and they get PAID..>>>

So then it's actually a HIGHER standard of obligation overall, with FEWER exceptions? And by "not dischargeable" does that also mean not reducible, so that these particular classes of debt can't be paid at just pennies on the dollar, or can they?


>>>on that type of debt, you are STILL required to keep paying it - so you don't get out of it at all... >>>


But what if it's a contingent/unliquidated/disputed debt, as with a lawsuit that's been stayed by the bankruptcy before there was any judgment. How can that be built in to the plan? Do those creditors have any options besides trying to get the stay lifted?


As always, thanks, Ladynred.

(I'm always going to think about bankruptcy now whenever I hear that song!