6th Circuit Rules Prior Bankruptcy Doesn't Bar Chapter 13 Relief

Summary


A discharge of debts in a Chapter 13 case isn't barred by the Bankruptcy Code's new prohibition on the receipt of a discharge of debts within four years of obtaining relief under Chapter 7, the 6th Circuit has ruled.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added [section]1328(f) to the Bankruptcy Code. The provision states that a Chapter 13 debtor may not receive a discharge of his debts if he "received a discharge ... in a case filed under Chapter 7 ... of this title during the 4-year period preceding" the filing of his Chapter 13 petition.

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Extract


6th Circuit Rules Prior Bankruptcy Doesn't Bar Chapter 13 Relief

In this case, a bankruptcy judge applied [section]1328(f) to ...

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