Chapter 13 Discharge Changes under BAPCPA

BAPCPA Discharges. Hardship discharges may still be granted to Chapter 13 debtors who file Chapter 13 bankruptcy petitions on or after October 17, 2005. However, the concept of a "super discharge" upon completion of the plan is diminished for cases commencing on or after October 17, 2005. BAPCPA excepted the tax debts listed below from Chapter 13 discharge. (For in-depth information on the exceptions to discharge, see IRM 5.9.17.8, Discharge and Exceptions to Discharge, and subsections.)

Even when the IRS filed an untimely claim or did not file a claim, trust fund taxes are excepted from discharge.

Taxes due on a fraudulent return filed by the debtor.

Taxes the debtor willfully attempted to evade or defeat.

Taxes due on unfiled returns.

Taxes on returns that were late filed and after the date that is two years before the date of the bankruptcy petition. Liabilities on an 11 USC 1305 claim are non-dischargeable when the post-petition return was filed late.