Chapter 13 Then Chapter 7 -- The 6-Year Bar

The 727(a)(9) Bar Explained

Section 727(a)(9) prevents a Chapter 7 discharge if the debtor received a discharge in a prior Chapter 13 case filed within 6 years before the current Chapter 7 filing -- unless one of two exceptions applies.

This is the only discharge bar with built-in exceptions. Congress recognized that Chapter 13 debtors who made a genuine effort to repay creditors should not be penalized as heavily as Chapter 7 debtors who paid nothing.

The Two Exceptions

The 6-year bar does not apply if either of the following is true:

Exception 1: 70% Plan

The debtor paid at least 70% of allowed unsecured claims in the prior Chapter 13 case. This is straightforward -- if your plan paid unsecured creditors 70 cents on the dollar or more, the 6-year bar does not apply.

Exception 2: Good Faith + Best Effort

The plan was proposed in good faith AND was the debtor's best effort. This is a two-part test:

• Good faith -- The plan was proposed with honest intent, not as a delay tactic
• Best effort -- The debtor committed all disposable income to the plan (even if the percentage paid to unsecured creditors was low)

When the 6-Year Bar Matters

In practice, the 6-year bar mainly affects debtors whose prior Chapter 13 case resulted in a very low percentage payout to unsecured creditors (under 70%) and whose plans may not satisfy the good faith + best effort test. This includes:

• Plans that paid 0% to unsecured creditors but were confirmed in districts that allow such plans
• Plans completed under hardship discharge provisions where full effort may be questioned
• Cases where the debtor's income increased significantly during the plan but payments were not modified

Strategy: Ch.13 to Ch.13 May Be Better

If the 6-year bar is a concern, remember that the Chapter 13 to Chapter 13 bar is only 2 years. Filing another Chapter 13 instead of Chapter 7 avoids the 727(a)(9) issue entirely.

Compare your options:

Path	Wait Time	Exception Available?
Ch.13 → Ch.7	6 years	Yes (70% or good faith)
Ch.13 → Ch.13	2 years	No exceptions needed