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Details of Reform

Extended time between discharges

• S. 256 § 312
Section 727(a)(8) is amended to subject a Chapter 7 debtor to denial of discharge if the debtor received a Chapter 7 or 11 discharge in a case filed within 8 years of the filing of the pending case. Section 1328 is amended to include a new subsection (f) providing that a Chapter 13 debtor will be denied discharge if the debtor received a discharge (1) “in a case filed under Chapter 7, 11, or 12 . . . during the 4-year period preceding the date of the order for relief” in the pending case, or (2) “in a case filed under Chapter 13 . . . during the 2-year period preceding the date of such order.”1 The resulting discharge system can be displayed in a table:

Discharge waiting period
Chapter 7
Chapter 11
Chapter 13
Chapter 7 8 years from prior case filing
None
4 years from prior case filing (or prior case discharge)
Chapter 11 8 years from prior case filing
None
4 years from prior case filing (or prior case discharge)
Chapter 13 Current law (6 years from prior case filing; none with defined payout)
None
2 years from prior case filing (or prior case discharge)
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