11 U.S.C. § 1328 — Discharge

Page 321 TITLE 11—BANKRUPTCY § 1328 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. Court Rules and Judicial Documents ADJUSTMENT OF DOLLAR AMOUNTS The dollar amounts specified in this section were ad- justed by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows: By notice dated Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (b)(3), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title. By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (b)(3), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b)(3), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b)(3), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (b)(3)(B), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (b)(3), dollar amount ‘‘25’’ was adjusted to ‘‘25’’. § 1327. Effect of confirmation (a) The provisions of a confirmed plan bind the debtor and each creditor, whether or not the claim of such creditor is provided for by the plan, and whether or not such creditor has ob- jected to, has accepted, or has rejected the plan. (b) Except as otherwise provided in the plan or the order confirming the plan, the confirmation of a plan vests all of the property of the estate in the debtor. (c) Except as otherwise provided in the plan or in the order confirming the plan, the property vesting in the debtor under subsection (b) of this section is free and clear of any claim or interest of any creditor provided for by the plan. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2650.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Subsection (a) binds the debtor and each creditor to the provisions of a confirmed plan, whether or not the claim of the creditor is provided for by the plan and whether or not the creditor has accepted, rejected, or objected to the plan. Unless the plan itself or the order confirming the plan otherwise provides, confirmation is deemed to vest all property of the estate in the debtor, free and clear of any claim or interest of any creditor provided for by the plan. § 1328. Discharge (a) Subject to subsection (d), as soon as prac- ticable after completion by the debtor of all payments under the plan, and in the case of a debtor who is required by a judicial or adminis- trative order, or by statute, to pay a domestic support obligation, after such debtor certifies that all amounts payable under such order or such statute that are due on or before the date of the certification (including amounts due be- fore the petition was filed, but only to the ex- tent provided for by the plan) have been paid, unless the court approves a written waiver of discharge executed by the debtor after the order for relief under this chapter, the court shall grant the debtor a discharge of all debts pro- vided for by the plan or disallowed under section 502 of this title, except any debt— (1) provided for under section 1322(b)(5); (2) of the kind specified in section 507(a)(8)(C) or in paragraph (1)(B), (1)(C), (2), (3), (4), (5), (8), or (9) of section 523(a); (3) for restitution, or a criminal fine, in- cluded in a sentence on the debtor’s conviction of a crime; or (4) for restitution, or damages, awarded in a civil action against the debtor as a result of willful or malicious injury by the debtor that caused personal injury to an individual or the death of an individual. (b) Subject to subsection (d), at any time after the confirmation of the plan and after notice and a hearing, the court may grant a discharge to a debtor that has not completed payments under the plan only if— (1) the debtor’s failure to complete such pay- ments is due to circumstances for which the debtor should not justly be held accountable; (2) the value, as of the effective date of the plan, of property actually distributed under the plan on account of each allowed unsecured claim is not less than the amount that would have been paid on such claim if the estate of the debtor had been liquidated under chapter 7 of this title on such date; and (3) modification of the plan under section 1329 of this title is not practicable. (c) A discharge granted under subsection (b) of this section discharges the debtor from all unse- cured debts provided for by the plan or dis- allowed under section 502 of this title, except any debt— (1) provided for under section 1322(b)(5) of this title; or (2) of a kind specified in section 523(a) of this title. (d) Notwithstanding any other provision of this section, a discharge granted under this sec- tion does not discharge the debtor from any debt based on an allowed claim filed under section 1305(a)(2) of this title if prior approval by the trustee of the debtor’s incurring such debt was practicable and was not obtained. (e) On request of a party in interest before one year after a discharge under this section is granted, and after notice and a hearing, the court may revoke such discharge only if— (1) such discharge was obtained by the debt- or through fraud; and (2) the requesting party did not know of such fraud until after such discharge was granted. (f) Notwithstanding subsections (a) and (b), the court shall not grant a discharge of all debts provided for in the plan or disallowed under sec- tion 502, if the debtor has received a discharge— (1) in a case filed under chapter 7, 11, or 12 of this title during the 4-year period preceding the date of the order for relief under this chap- ter, or (2) in a case filed under chapter 13 of this title during the 2-year period preceding the date of such order. Page 322 TITLE 11—BANKRUPTCY § 1328 (g)(1) The court shall not grant a discharge under this section to a debtor unless after filing a petition the debtor has completed an instruc- tional course concerning personal financial management described in section 111. (2) Paragraph (1) shall not apply with respect to a debtor who is a person described in section 109(h)(4) or who resides in a district for which the United States trustee (or the bankruptcy ad- ministrator, if any) determines that the ap- proved instructional courses are not adequate to service the additional individuals who would otherwise be required to complete such instruc- tional course by reason of the requirements of paragraph (1). (3) The United States trustee (or the bank- ruptcy administrator, if any) who makes a de- termination described in paragraph (2) shall re- view such determination not later than 1 year after the date of such determination, and not less frequently than annually thereafter. (h) The court may not grant a discharge under this chapter unless the court after notice and a hearing held not more than 10 days before the date of the entry of the order granting the dis- charge finds that there is no reasonable cause to believe that— (1) section 522(q)(1) may be applicable to the debtor; and (2) there is pending any proceeding in which the debtor may be found guilty of a felony of the kind described in section 522(q)(1)(A) or liable for a debt of the kind described in sec- tion 522(q)(1)(B). (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2650; Pub. L. 98–353, title III, § 532, July 10, 1984, 98 Stat. 389; Pub. L. 101–508, title III, § 3007(b)(1), Nov. 5, 1990, 104 Stat. 1388–28; Pub. L. 101–581, §§ 2(b), 3, Nov. 15, 1990, 104 Stat. 2865; Pub. L. 101–647, title XXXI, §§ 3102(b), 3103, Nov. 29, 1990, 104 Stat. 4916; Pub. L. 103–394, title III, § 302, title V, § 501(d)(38), Oct. 22, 1994, 108 Stat. 4132, 4147; Pub. L. 109–8, title I, § 106(c), title II, § 213(11), title III, §§ 312(2), 314(b), 330(d), title VII, § 707, Apr. 20, 2005, 119 Stat. 38, 53, 87, 88, 102, 126; Pub. L. 116–260, div. FF, title X, § 1001(b), Dec. 27, 2020, 134 Stat. 3217.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 1328(a) adopts a provision contained in the Senate amendment permitting the court to approve a waiver of discharge by the debtor. It is anticipated that such a waiver must be in writing executed after the order for relief in a case under chapter 13. SENATE REPORT NO. 95–989 The court is to enter a discharge, unless waived, as soon as practicable after completion of payments under the plan. The debtor is to be discharged of all debts pro- vided for by the plan or disallowed under section 502, except a debt provided for under the plan the last pay- ment on which was not due until after the completion of the plan, or a debt incurred for willful and malicious conversion of or injury to the property or person of an- other. Subsection (b) is the successor to Bankruptcy Act Section 661 [section 1061 of former title 11]. This sub- section permits the bankruptcy judge to grant the debtor a discharge at any time after confirmation of a plan, if the court determines, after notice and hearing, that the failure to complete payments under the plan is due to circumstances for which the debtor should not justly be held accountable, the distributions made to each creditor under the plan equal in value the amount that would have been paid to the creditor had the es- tate been liquidated under chapter 7 of title 11 at the date of the hearing under this subsection, and that modification of the plan is impracticable. The dis- charge granted under subsection (b) relieves the debtor from all unsecured debts provided for by the plan or disallowed under section 502, except nondischargeable debts described in section 523(a) of title 11 or debts of the type covered by section 1322(b)(5). Subsection (d) excepts from any chapter 13 discharge a debt based on an allowed section 1305(a)(2) postpetition claim, if prior trustee approval of the in- curring of the debt was practicable but was not ob- tained. A chapter 13 discharge obtained through fraud and before the moving party gained knowledge of the fraud may be revoked by the court under subsection (e), after notice and hearing, at the request of any party in inter- est made within 1 year after the discharge was granted. Editorial Notes AMENDMENTS 2020—Subsec. (i). Pub. L. 116–260, § 1001(b)(2), struck out subsec. (i) which read as follows: ‘‘Subject to sub- section (d), after notice and a hearing, the court may grant a discharge of debts dischargeable under sub- section (a) to a debtor who has not completed payments to the trustee or a creditor holding a security interest in the principal residence of the debtor if— ‘‘(1) the debtor defaults on not more than 3 monthly payments due on a residential mortgage under sec- tion 1322(b)(5) on or after March 13, 2020, to the trust- ee or creditor caused by a material financial hardship due, directly or indirectly, by the coronavirus disease 2019 (COVID–19) pandemic; or ‘‘(2)(A) the plan provides for the curing of a default and maintenance of payments on a residential mort- gage under section 1322(b)(5); and ‘‘(B) the debtor has entered into a forbearance agreement or loan modification agreement with the holder or servicer (as defined in section 6(i) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)) of the mortgage described in subpara- graph (A).’’ Pub. L. 116–260, § 1001(b)(1), added subsec. (i). 2005—Subsec. (a). Pub. L. 109–8, § 330(d)(1), substituted ‘‘Subject to subsection (d), as’’ for ‘‘As’’ in introduc- tory provisions. Pub. L. 109–8, § 314(b), added pars. (1) to (4) and struck out former pars. (1) to (3) which read as follows: ‘‘(1) provided for under section 1322(b)(5) of this title; ‘‘(2) of the kind specified in paragraph (5), (8), or (9) of section 523(a) of this title; or ‘‘(3) for restitution, or a criminal fine, included in a sentence on the debtor’s conviction of a crime.’’ Pub. L. 109–8, § 213(11), inserted ‘‘, and in the case of a debtor who is required by a judicial or administrative order, or by statute, to pay a domestic support obliga- tion, after such debtor certifies that all amounts pay- able under such order or such statute that are due on or before the date of the certification (including amounts due before the petition was filed, but only to the extent provided for by the plan) have been paid’’ after ‘‘completion by the debtor of all payments under the plan’’ in introductory provisions. Subsec. (a)(2). Pub. L. 109–8, § 707, substituted ‘‘sec- tion 507(a)(8)(C) or in paragraph (1)(B), (1)(C),’’ for ‘‘paragraph’’. Subsec. (b). Pub. L. 109–8, § 330(d)(2), substituted ‘‘Subject to subsection (d), at’’ for ‘‘At’’ in introduc- tory provisions. Subsec. (f). Pub. L. 109–8, § 312(2), added subsec. (f). Subsec. (g). Pub. L. 109–8, § 106(c), added subsec. (g). Subsec. (h). Pub. L. 109–8, § 330(d)(3), added subsec. (h). 1994—Subsec. (a)(2). Pub. L. 103–394, § 501(d)(38)(A), substituted ‘‘(5), (8), or (9)’’ for ‘‘(5) or (8)’’. Page 323 TITLE 11—BANKRUPTCY § 1329 Subsec. (a)(3). Pub. L. 103–394, § 501(d)(38)(B), struck out last par. (3). See 1990 Amendment note below. Pub. L. 103–394, § 302, inserted ‘‘, or a criminal fine,’’ after ‘‘restitution’’. 1990—Subsec. (a)(1). Pub. L. 101–581, § 3(1), and Pub. L. 101–647, § 3103(1), made identical amendments striking ‘‘or’’ at end. Subsec. (a)(2). Pub. L. 101–581, § 3(2), and Pub. L. 101–647, § 3103(2), made identical amendments sub- stituting ‘‘; or’’ for period at end. Pub. L. 101–581, § 2(b), and Pub. L. 101–647, § 3102(b), which directed identical insertions of ‘‘or 523(a)(9)’’ after ‘‘523(a)(5)’’, could not be executed because of prior amendment by Pub. L. 101–508. See below. Pub. L. 101–508 substituted ‘‘paragraph (5) or (8) of section 523(a)’’ for ‘‘section 523(a)(5)’’. Subsec. (a)(3). Pub. L. 101–581, § 3(3), and Pub. L. 101–647, § 3103(3), made identical amendments adding par. (3). 1984—Subsec. (e)(1). Pub. L. 98–353, § 532(1), inserted ‘‘by the debtor’’ after ‘‘obtained’’. Subsec. (e)(2). Pub. L. 98–353, § 532(2), substituted ‘‘the requesting party did not know of such fraud until’’ for ‘‘knowledge of such fraud came to the requesting party’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. FF, title X, § 1001(b)(2), Dec. 27, 2020, 134 Stat. 3217, provided that the amendment made by section 1001(b)(2) is effective on the date that is 1 year after Dec. 27, 2020. EFFECTIVE DATE OF 2005 AMENDMENT Amendments by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, with amendments by sections 106(c), 213(11), 312(2), 314(b), and 707 of Pub. L. 109–8 not appli- cable with respect to cases commenced under this title before such effective date, except as otherwise pro- vided, and amendment by section 330(d) of Pub. L. 109–8 applicable with respect to cases commenced under this title on or after Apr. 20, 2005, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–647 effective Nov. 29, 1990, but not applicable with respect to cases commenced under this title before Nov. 29, 1990, see section 3104 of Pub. L. 101–647, set out as a note under section 523 of this title. Amendment by Pub. L. 101–581 effective Nov. 15, 1990, but not applicable with respect to cases commenced under this title before Nov. 15, 1990, see section 4 of Pub. L. 101–581, set out as a note under section 523 of this title. Pub. L. 101–508, title III, § 3007(b)(2), Nov. 5, 1990, 104 Stat. 1388–29, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall not apply to any case under the provisions of title 11, United States Code, commenced before the date of the enactment of this Act [Nov. 5, 1990].’’ EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. § 1329. Modification of plan after confirmation (a) At any time after confirmation of the plan but before the completion of payments under such plan, the plan may be modified, upon re- quest of the debtor, the trustee, or the holder of an allowed unsecured claim, to— (1) increase or reduce the amount of pay- ments on claims of a particular class provided for by the plan; (2) extend or reduce the time for such pay- ments; (3) alter the amount of the distribution to a creditor whose claim is provided for by the plan to the extent necessary to take account of any payment of such claim other than under the plan; or (4) reduce amounts to be paid under the plan by the actual amount expended by the debtor to purchase health insurance for the debtor (and for any dependent of the debtor if such dependent does not otherwise have health in- surance coverage) if the debtor documents the cost of such insurance and demonstrates that— (A) such expenses are reasonable and nec- essary; (B)(i) if the debtor previously paid for health insurance, the amount is not materi- ally larger than the cost the debtor pre- viously paid or the cost necessary to main- tain the lapsed policy; or (ii) if the debtor did not have health insur- ance, the amount is not materially larger than the reasonable cost that would be in- curred by a debtor who purchases health in- surance, who has similar income, expenses, age, and health status, and who lives in the same geographical location with the same number of dependents who do not otherwise have health insurance coverage; and (C) the amount is not otherwise allowed for purposes of determining disposable in- come under section 1325(b) of this title; and upon request of any party in interest, files proof that a health insurance policy was pur- chased. (b)(1) Sections 1322(a), 1322(b), and 1323(c) of this title and the requirements of section 1325(a) of this title apply to any modification under subsection (a) of this section. (2) The plan as modified becomes the plan un- less, after notice and a hearing, such modifica- tion is disapproved. (c) A plan modified under this section may not provide for payments over a period that expires after the applicable commitment period under section 1325(b)(1)(B) after the time that the first payment under the original confirmed plan was due, unless the court, for cause, approves a longer period, but the court may not approve a period that expires after five years after such time. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2651; Pub. L. 98–353, title III, §§ 319, 533, July 10, 1984, 98 Stat. 357, 389; Pub. L. 109–8, title I, § 102(i), title III, § 318(4), Apr. 20, 2005, 119 Stat. 34, 94; Pub. L. 116–136, div. A, title I, § 1113(b)(1)(C), (2)(A)(iii), Mar. 27, 2020, 134 Stat. 311, 312; Pub. L. 116–260, div. FF, title X, § 1001(e), Dec. 27, 2020, 134 Stat. 3218; Pub. L. 117–5, § 2(b)(1), Mar. 27, 2021, 135 Stat. 249.)