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1. Time between discharge, multiple filings.
Section 72(a)(8) was amended to subject a Chapter 7 debtor to denial of discharge if the debtor received either a chapter 7 or 11 discharge in a case field within 8 years of the filing of the subsequent case. This is designed to prevent multiple consecutive bankruptcy filings which are often used to delay foreclosures or other judgment executions.
Section 1328 was amended to include a new subsection (f) providing that a chapter 13 debtor will be denied discharge if the debtor received a discharge (1) "in a case filed under Chapter 7, 11 or 12… during the 4-year period preceding the date of the order for relief" in the pending case, or (2) "in case filed under chapter 13… during the 2-year period preceding the date of such order" This is meant to discourage repeat filers especially under Chapter 7. These provisions may have a material effect on the sub prime market as relates to borrowers who may have substantial incomes and even favorable mortgage credit histories but are unable to immediately discharge unsecured debt based on the "means test" provisions referenced herein. Further, Chapter 13 may not be available as a subsequent tool to delay a mortgage foreclosure in the case of a previous filing.
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