Under the old bankruptcy law, certain debts that might have been non dischargeable in a Chapter 7 case could be discharged in a Chapter 13 case. For example, debts for late or fraudulently filed tax returns, debts for embezzlement or breach of fiduciary duty, and debts for civil fraud and misuse of credit cards came under the “superdischarge” provision. Current bankruptcy law eliminates the ability to discharge these debts in a Chapter 13 case. However, a few debts remain dischargeable in Chapter 13 which are not dischargeable in Chapter 7 such as debts from divorce property settlements or separation proceedings. Superdischarge still covers:
- 523(a)(6) Willful or malicious injury to property,
- 523(a)(14) Debts incurred to pay non-dischargeable taxes, and
- 523(a)(15) Property settlement obligations.