Sec. 523. - Exceptions to discharge in Bankruptcy
(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, before, on, or after the date on which the
petition was filed, 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).