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| | Sec. 523. - Exceptions to discharge
(a) A discharge under section
727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an
individual debtor from any debt—
(1) for a tax or a customs duty—
(A) of the kind and for the periods specified in section 507
(a)(2) or 507 (a)(8) of this title, whether or not a claim for such tax was
filed or allowed;
(B) with respect to which a return, if required—
(i) was not filed; or
(ii) was filed after the date on which such return was last due, under
applicable law or under any extension, and after two years before the date of
the filing of the petition; or
(C) with respect to which the debtor made a fraudulent return
or willfully attempted in any manner to evade or defeat such tax;
(2) for money, property,
services, or an extension, renewal, or refinancing of credit, to the extent
obtained by—
(A) false pretenses, a false representation, or actual fraud,
other than a statement respecting the debtor’s or an insider’s financial
condition;
(B) use of a statement in writing—
(i) that is materially false;
(ii) respecting the debtor’s or an insider’s financial condition;
(iii) on which the creditor to whom the debtor is liable for such money,
property, services, or credit reasonably relied; and
(iv) that the debtor caused to be made or published with intent to deceive; or
(C) for purposes of subparagraph (A) of this paragraph,
consumer debts owed to a single creditor and aggregating more than $1,000 for
“luxury goods or services” incurred by an individual debtor on or within 60 days
before the order for relief under this title, or cash advances aggregating more
than $1,000 that are extensions of consumer credit under an open end credit plan
obtained by an individual debtor on or within 60 days before the order for
relief under this title, are presumed to be nondischargeable; “luxury goods or
services” do not include goods or services reasonably acquired for the support
or maintenance of the debtor or a dependent of the debtor; an extension of
consumer credit under an open end credit plan is to be defined for purposes of
this subparagraph as it is defined in the Consumer Credit Protection Act;
(3) neither listed nor scheduled
under section 521 (1) of this title, with the name, if known to the debtor, of
the creditor to whom such debt is owed, in time to permit—
(A) if such debt is not of a kind specified in paragraph (2),
(4), or (6) of this subsection, timely filing of a proof of claim, unless such
creditor had notice or actual knowledge of the case in time for such timely
filing; or
(B) if such debt is of a kind specified in paragraph (2),
(4), or (6) of this subsection, timely filing of a proof of claim and timely
request for a determination of dischargeability of such debt under one of such
paragraphs, unless such creditor had notice or actual knowledge of the case in
time for such timely filing and request;
(4) for fraud or defalcation
while acting in a fiduciary capacity, embezzlement, or larceny;
(5) to a spouse, former spouse,
or child of the debtor, for alimony to, maintenance for, or support of such
spouse or child, in connection with a separation agreement, divorce decree or
other order of a court of record, determination made in accordance with State or
territorial law by a governmental unit, or property settlement agreement, but
not to the extent that—
(A) such debt is assigned to another entity, voluntarily, by
operation of law, or otherwise (other than debts assigned pursuant to section
408(a)(3) of the Social Security Act, or any such debt which has been assigned
to the Federal Government or to a State or any political subdivision of such
State); or
(B) such debt includes a liability designated as alimony,
maintenance, or support, unless such liability is actually in the nature of
alimony, maintenance, or support;
(6) for willful and malicious
injury by the debtor to another entity or to the property of another entity;
(7) to the extent such debt is
for a fine, penalty, or forfeiture payable to and for the benefit of a
governmental unit, and is not compensation for actual pecuniary loss, other than
a tax penalty—
(A) relating to a tax of a kind not specified in paragraph
(1) of this subsection; or
(B) imposed with respect to a transaction or event that
occurred before three years before the date of the filing of the petition;
(8) for an educational benefit
overpayment or loan made, insured or guaranteed by a governmental unit, or made
under any program funded in whole or in part by a governmental unit or nonprofit
institution, or for an obligation to repay funds received as an educational
benefit, scholarship or stipend, unless excepting such debt from discharge under
this paragraph will impose an undue hardship on the debtor and the debtor’s
dependents;
(9) for death or personal injury
caused by the debtor’s operation of a motor vehicle if such operation was
unlawful because the debtor was intoxicated from using alcohol, a drug, or
another substance;
(10) that was or could have been
listed or scheduled by the debtor in a prior case concerning the debtor under
this title or under the Bankruptcy Act in which the debtor waived discharge, or
was denied a discharge under section 727 (a)(2), (3), (4), (5), (6), or (7) of
this title, or under section 14c(1), (2), (3), (4), (6), or (7) of such Act;
(11) provided in any final
judgment, unreviewable order, or consent order or decree entered in any court of
the United States or of any State, issued by a Federal depository institutions
regulatory agency, or contained in any settlement agreement entered into by the
debtor, arising from any act of fraud or defalcation while acting in a fiduciary
capacity committed with respect to any depository institution or insured credit
union;
(12) for malicious or reckless
failure to fulfill any commitment by the debtor to a Federal depository
institutions regulatory agency to maintain the capital of an insured depository
institution, except that this paragraph shall not extend any such commitment
which would otherwise be terminated due to any act of such agency;
(13) for any payment of an order
of restitution issued under title 18, United States Code;
(14) incurred to pay a tax to the
United States that would be nondischargeable pursuant to paragraph (1);
(15) not of the kind described in
paragraph (5) that is incurred by the debtor in the course of a divorce or
separation or in connection with a separation agreement, divorce decree or other
order of a court of record, a determination made in accordance with State or
territorial law by a governmental unit unless—
(A) the debtor does not have the ability to pay such debt
from income or property of the debtor not reasonably necessary to be expended
for the maintenance or support of the debtor or a dependent of the debtor and,
if the debtor is engaged in a business, for the payment of expenditures
necessary for the continuation, preservation, and operation of such business; or
(B) discharging such debt would result in a benefit to the
debtor that outweighs the detrimental consequences to a spouse, former spouse,
or child of the debtor;
(16) for a fee or assessment that
becomes due and payable after the order for relief to a membership association
with respect to the debtor’s interest in a dwelling unit that has condominium
ownership or in a share of a cooperative housing corporation, but only if such
fee or assessment is payable for a period during which—
(A) the debtor physically occupied a dwelling unit in the
condominium or cooperative project; or
(B) the debtor rented the dwelling unit to a tenant and
received payments from the tenant for such period,
but nothing in this paragraph shall except from discharge the debt of a debtor
for a membership association fee or assessment for a period arising before entry
of the order for relief in a pending or subsequent bankruptcy case;
(17) for a fee imposed by a court
for the filing of a case, motion, complaint, or appeal, or for other costs and
expenses assessed with respect to such filing, regardless of an assertion of
poverty by the debtor under section 1915 (b) or (f) of title 28, or the debtor’s
status as a prisoner, as defined in section 1915 (h) of title 28;
(18) owed under State law to a
State or municipality that is—
(A) in the nature of support, and
(B) enforceable under part D of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); or
(19) that—
(A) is for—
(i) the violation of any of the Federal securities laws (as that term is defined
in section 3(a)(47) of the Securities Exchange Act of 1934), any of the State
securities laws, or any regulation or order issued under such Federal or State
securities laws; or
(ii) common law fraud, deceit, or manipulation in connection with the purchase
or sale of any security; and
(B) results from—
(i) any judgment, order, consent order, or decree entered in any Federal or
State judicial or administrative proceeding;
(ii) any settlement agreement entered into by the debtor; or
(iii) any court or administrative order for any damages, fine, penalty,
citation, restitutionary payment, disgorgement payment, attorney fee, cost, or
other payment owed by the debtor.
(b) Notwithstanding subsection (a) of this section, a debt that was excepted
from discharge under subsection (a)(1), (a)(3), or (a)(8) of this section, under
section 17a(1), 17a(3), or 17a(5) of the Bankruptcy Act, under section 439A [1]
of the Higher Education Act of 1965, or under section 733(g) [1] of the Public
Health Service Act in a prior case concerning the debtor under this title, or
under the Bankruptcy Act, is dischargeable in a case under this title unless, by
the terms of subsection (a) of this section, such debt is not dischargeable in
the case under this title.
(c)
(1) Except as provided in subsection (a)(3)(B) of this section, the debtor shall
be discharged from a debt of a kind specified in paragraph (2), (4), (6), or
(15) of subsection (a) of this section, unless, on request of the creditor to
whom such debt is owed, and after notice and a hearing, the court determines
such debt to be excepted from discharge under paragraph (2), (4), (6), or (15),
as the case may be, of subsection (a) of this section.
(2) Paragraph (1) shall not apply in the case of a Federal depository
institutions regulatory agency seeking, in its capacity as conservator,
receiver, or liquidating agent for an insured depository institution, to recover
a debt described in subsection (a)(2), (a)(4), (a)(6), or (a)(11) owed to such
institution by an institution-affiliated party unless the receiver, conservator,
or liquidating agent was appointed in time to reasonably comply, or for a
Federal depository institutions regulatory agency acting in its corporate
capacity as a successor to such receiver, conservator, or liquidating agent to
reasonably comply, with subsection (a)(3)(B) as a creditor of such
institution-affiliated party with respect to such debt.
(d) If a creditor requests a determination of dischargeability of a consumer
debt under subsection (a)(2) of this section, and such debt is discharged, the
court shall grant judgment in favor of the debtor for the costs of, and a
reasonable attorney’s fee for, the proceeding if the court finds that the
position of the creditor was not substantially justified, except that the court
shall not award such costs and fees if special circumstances would make the
award unjust.
(e) Any institution-affiliated party of a [2] insured depository institution
shall be considered to be acting in a fiduciary capacity with respect to the
purposes of subsection (a)(4) or (11).
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