Penalty Owed to a Governmental Unit is Dischargeable in Chapter 13 - But Not Chapter 7 - Bankruptcy, Even if it Arises from Fraud

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The scope and extent of debts that may be discharged is an often litigated issue in bankruptcy. In a recent Chapter 13 case in the U.S. Bankruptcy Court for the Eastern District of Michigan, the bankruptcy court considered whether an otherwise dischargeable government penalty debt is nondischargeable if the debt arises from fraud.[1] Read More ›
Tags: Chapter 13, Chapter 7, Eastern District of Michigan