11 U.S.C. § 1328: Chapter 13 Discharge Explained

This article is provided for educational and informational purposes only. It does not constitute legal, financial, or tax advice, and no attorney-client relationship is formed by reading it. Laws, regulations, official guidance, and related information vary by jurisdiction, change frequently, and may have changed or become outdated since the publication date. Always verify current information with authoritative sources and consult a qualified professional about your specific circumstances. The author and publisher assume no liability for actions taken based on this information.

11 U.S.C. § 1328 is the federal statute governing discharge in a Chapter 13 bankruptcy. It addresses the ordinary discharge after completion of plan payments, the narrower hardship discharge before completion, exceptions to discharge, revocation for fraud, prior-case timing, financial-management education, and a final statutory finding.

A discharge is not the same as confirmation of a repayment plan. Section 1325 governs confirmation, while Section 1328 governs whether and when the court grants the Chapter 13 discharge.

Section 1328(a): discharge after completing plan payments

Section 1328(a) generally requires the court to grant discharge as soon as practicable after the debtor completes all payments under the plan. The subsection also conditions discharge on other requirements and allows a debtor to execute a written waiver of discharge after the order for relief.

For a debtor required by an order or statute to pay a domestic support obligation, Section 1328(a) requires a certification that all qualifying amounts due on or before the certification date have been paid. This includes prepetition amounts only to the extent provided for by the plan.

Plan completion depends on the confirmed plan and later valid modifications, not simply the passage of time. Section 1329 permits specified parties to seek post-confirmation modification before plan payments are completed, including changes to payment amounts or timing within statutory limits.

The federal judiciary’s Chapter 13 overview describes plans as typically lasting three to five years. The actual duration and payment terms come from the confirmed plan, applicable Code provisions, and any approved modification.

What the completed-plan discharge covers

Subject to Section 1328(d), subsection (a) covers debts provided for by the plan or disallowed under Section 502. It then lists debts that are excepted rather than discharged.

The exceptions include debts treated under Section 1322(b)(5), specified tax and fraud-related debts cross-referenced from Section 523(a), domestic support obligations, most covered education debts, intoxicated-driving injury debts, criminal restitution or fines, and specified civil awards for willful or malicious personal injury or death. The statutory cross-references must be followed carefully because Section 1328(a) does not incorporate every paragraph of Section 523(a).

This is why the scope of a Chapter 13 discharge cannot be determined from a debt’s everyday label alone. The plan’s treatment, the precise statutory category, and any timely dischargeability litigation can affect the result.

Section 523(c) gives special procedural treatment to debts described in Section 523(a)(2), (4), and (6). Rule 4007 sets deadlines and procedures for certain complaints to determine dischargeability, including a special provision when a debtor seeks hardship discharge under Section 1328(b).

Hardship discharge under Section 1328(b)

A hardship discharge is not automatic when a debtor cannot finish payments. After confirmation and after notice and a hearing, Section 1328(b) permits relief only if the debtor satisfies all three statutory conditions.

• The failure to complete payments must result from circumstances for which the debtor should not justly be held accountable.
• Each allowed unsecured claim must have received at least the value it would have received in a hypothetical Chapter 7 liquidation measured as of the plan’s effective date.
• Modification under Section 1329 must not be practicable.

The word “and” matters: meeting only one or two conditions is insufficient under the text. Whether the evidence satisfies those standards is a court determination after the required procedure.

A hardship discharge is also narrower than the completed-plan discharge. Section 1328(c) excepts debts treated under Section 1322(b)(5) and every kind of debt specified in Section 523(a).

Rule 4007(d) requires the court to set a time for complaints under Section 523(a)(6) when the debtor moves for a hardship discharge. The clerk must give creditors at least 30 days’ notice of that deadline in the manner provided by Rule 2002.

Additional statutory conditions and limits

Section 1328(d) excludes an allowed postpetition debt described in Section 1305(a)(2) when prior trustee approval was practicable but not obtained. This rule is separate from the more familiar exceptions listed in subsections (a) and (c).

Section 1328(f) imposes prior-discharge waiting periods measured from the filing date of the earlier case to the order for relief in the Chapter 13 case. It bars discharge if the debtor received a discharge in a Chapter 7, 11, or 12 case filed during the preceding four years, or in a Chapter 13 case filed during the preceding two years.

The statutory test concerns receipt of a discharge in the earlier case, not merely the fact that an earlier petition was filed. It also governs eligibility for discharge in the newer case, rather than eligibility to file the newer petition.

Section 1328(g) generally requires completion of an instructional course concerning personal financial management after the petition is filed. The subsection contains exceptions for specified debtors and for a district where the responsible official determines that adequate approved courses are unavailable.

Section 1328(h) prevents discharge unless, after notice and a hearing held no more than 10 days before entry, the court makes the findings stated there concerning Section 522(q). This is a distinct final statutory gate, even after plan payments have been completed.

Revocation of a discharge obtained by fraud

Section 1328(e) permits a party in interest to request revocation before one year has passed after the discharge. After notice and a hearing, the court may revoke only if the discharge was obtained through the debtor’s fraud and the requesting party did not know of the fraud until after discharge.

Revocation is therefore different from arguing before entry that a particular debt is nondischargeable. Rule 7001 treats an action to revoke a Chapter 13 discharge as an adversary proceeding.

The one-year period in Section 1328(e) is part of the statute itself. General procedural rules should not be assumed to enlarge a congressionally fixed period.

Discharge, liens, and case closure are separate concepts

A discharge concerns the debtor’s personal liability for debts within its scope. It does not discharge obligations that Section 1328 expressly excepts.

The broader guide to a bankruptcy discharge explains the injunction and practical effect, while Section 1328 supplies the Chapter 13-specific gateway and exceptions. The discharge order and the confirmed plan should be read together when identifying what remains payable.

How to read Section 1328 accurately

First identify whether the request concerns subsection (a) completion discharge or subsection (b) hardship discharge. Their eligibility standards and debt exceptions are not interchangeable.

Next verify plan completion, domestic support certification if applicable, prior discharge dates, financial-management-course status, and the Section 522(q) finding. Then trace each statutory cross-reference that Section 1328 expressly incorporates before categorizing a debt.

Finally, consult current Rule 4007 for applicable complaint, notice, and timing requirements. Section 1328 supplies the federal discharge rule, but procedure and the facts in the court record determine how that rule is applied in a particular case.

Sources

• 11 U.S.C. § 1328 — Discharge
• 11 U.S.C. § 1325 — Confirmation of plan
• 11 U.S.C. § 1329 — Modification after confirmation
• 11 U.S.C. § 523 — Exceptions to discharge
• Federal Rules of Bankruptcy Procedure — Part IV
• Federal Rules of Bankruptcy Procedure — Part VII
• U.S. Courts — Chapter 13 Bankruptcy Basics