For attorneys representing chapter 13 debtors who have been affected by the recent and devastating floods in eastern Kentucky, here is some information to assist you in counseling your clients about their chapter 13 cases.
Some 523(a) nondischargeable debts, such as 523(a)(6) willful and malicious injury to property, CAN BE discharged in a chapter 13 case when the debtor completes plan payments. Creditors attorneys need to know when to file a 523(a)(6) complaint.
If a confirmed plan provides that the debtors will cure arrearages through the plan and maintain ongoing payments on a mortgage or long-term car loan, and the debtors complete plan payments and get a discharge, those section 1322(b)(5) debts are not discharged. What happens if after confirmation the debtors change their mind – is the claim still excepted from discharge?
Here are some more practice tips and “OMG!” lessons from the 2016 NACTT conference. This post is on two important cases affecting the debtor’s discharge (this is a must-read for debtors’ attorneys).