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What is Section 727(a)(9)?

Section 727(a)(9) is the companion statute to Section 727(a)(8). While 727(a)(8) covers the situation where your prior case was a Chapter 7 or 11, Section 727(a)(9) covers the situation where your prior case was a Chapter 12 or Chapter 13.

In plain English: if you received a Chapter 13 (or Chapter 12) discharge in a case filed within the past 6 years, you cannot get a Chapter 7 discharge -- unless you paid all of your unsecured creditors in full, or paid at least 70% of them and your plan was a good-faith best effort.

The 6-Year Bar

Like Section 727(a)(8), the 6-year period under 727(a)(9) is measured from filing date to filing date. The date you received your Chapter 13 discharge does not control.

This is particularly important for Chapter 13 cases because they typically last 3 to 5 years. A debtor who completes a 5-year plan may find that the 6-year window is nearly expired by the time they receive the discharge, making the wait quite short.

The 70% Exception

Section 727(a)(9)(B) provides an exception to the 6-year bar. If you meet both of the following conditions, the bar does not apply:

1. You paid at least 70% of allowed unsecured claims under the plan; and
2. The plan was proposed in good faith and represented your best effort.

Both conditions must be satisfied. Paying 70% alone is not enough if the plan was not proposed in good faith. And a good-faith plan that paid less than 70% does not qualify.

How Courts Evaluate "Best Effort"

Courts look at the totality of the circumstances to determine whether a plan represented the debtor's "best effort." Factors include:

• Did the debtor devote all disposable income to the plan?
• Was the plan the maximum the debtor could afford?
• Did the debtor's financial situation change during the plan?
• Were there modifications that reduced payments without justification?

This is a subjective determination, and different courts may reach different conclusions on similar facts. If you plan to rely on the 70% exception, you should have documentation of your plan payments and be prepared to demonstrate good faith.

The 100% Exception

Section 727(a)(9)(A) provides a simpler exception: if you paid 100% of allowed unsecured claims, the bar does not apply, period. No good-faith or best-effort analysis is required. If every unsecured creditor received full payment through the plan, you are free to file Chapter 7 at any time.

When 727(a)(9) Does Not Apply

Section 727(a)(9) only applies when the prior case resulted in a discharge under Section 1228 (Chapter 12) or Section 1328 (Chapter 13). It does not apply if:

• The prior Chapter 13 case was dismissed before completion (no discharge was granted)
• The debtor did not complete the plan and did not receive a hardship discharge
• The prior case was converted to Chapter 7 (the resulting discharge, if any, is under Section 727, triggering 727(a)(8) instead)

This distinction matters a great deal. Chapter 13 cases have high dismissal rates -- nationally, over 50% of Chapter 13 cases end in dismissal rather than discharge. If your Chapter 13 was dismissed, Section 727(a)(9) does not bar a subsequent Chapter 7 filing.

727(a)(9) vs. 727(a)(8)

Practical Guidance

If you completed a Chapter 13 plan and want to file Chapter 7:

1. Find your prior filing date. The date the Chapter 13 petition was filed, not the confirmation date or discharge date.
2. Check whether 6 years have passed. Use our date calculator.
3. If within 6 years, check the 70% threshold. Review your Chapter 13 trustee's final report to determine the percentage paid to unsecured creditors.
4. If you paid 70% or more, gather documentation and be prepared to demonstrate good faith and best effort to the court.
5. If you paid less than 70%, you must wait until the 6-year window expires, or consider filing Chapter 13 again instead (subject to Section 1328(f)).