Form 18f - Discharge Of Debtor After Completion Of Chapter 12 Plan (Page 2 of 2) in pdf

Form 18F (08/07)

EXPLANATION OF BANKRUPTCY DISCHARGE IN A CHAPTER 12 CASE

This court order grants a discharge to the person named as the debtor after the debtor has fulfilled

all requirements under the chapter 12 plan. It is not a dismissal of the case.

Collection of Discharged Debts Prohibited

The discharge prohibits any attempt to collect from the debtor a debt that has been discharged.

For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or

continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged

debt from the debtor. [In a case involving community property: There are also special rules that protect

certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy

case.] A creditor who violates this order can be required to pay damages and attorney's fees to the debtor.

However, a creditor may have the right to enforce a valid lien, such as a mortgage or security

interest, against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the

bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged.

Debts That are Discharged

The chapter 12 discharge order eliminates a debtor's legal obligation to pay a debt that is

discharged. Most, but not all, types of debts are discharged if the debt is provided for by the chapter 12

plan or is disallowed by the court pursuant to section 502 of the Bankruptcy Code.

Debts that are Not Discharged

Some of the common types of debts which are not discharged in a chapter 12 bankruptcy case

are:

a. Debts for most taxes; and, in a case filed on or after October 17, 2005, debts incurred to pay

nondischargeable taxes;

b. Debts that are domestic support obligations;

c. Debts for most student loans;

d. Debts provided for under sections 1222(b)(5)or (b)(9) of the Bankruptcy Code and on which

the last payment or other transfer is due after the date on which the final payment under the

plan was due;

e. Debts for most fines, penalties, forfeitures, or criminal restitution obligations;

Debts for personal injuries or death caused by the debtor's operation of a motor vehicle,

vessel, or aircraft while intoxicated;

g. Some debts which were not properly listed by the debtor;

h. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case

are not discharged; and

Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the

Thrift Savings Plan for federal employees for certain types of loans from these plans (in a

case filed on or after October 17, 2005).

This information is only a general summary of the bankruptcy discharge. There are exceptions to

these general rules. Because the law is complicated, you may want to consult an attorney to

determine the exact effect of the discharge in this case.

Form 18f - Discharge Of Debtor After Completion Of Chapter 12 Plan Page 2