What Is Section 727(a)(9)?
Section 727(a)(9) is the companion provision to Section 727(a)(8). While 727(a)(8) addresses Chapter 7 after Chapter 7 (8-year bar), Section 727(a)(9) addresses Chapter 7 after Chapter 13 or Chapter 12.
The bar is shorter -- 6 years instead of 8 -- and unlike 727(a)(8), it has two exceptions that can eliminate the waiting period entirely.
11 U.S.C. Section 727(a)(9): "The court shall grant the debtor a discharge, unless ... the debtor has been granted a discharge under section 1228 or 1328 of this title ... in a case commenced within 6 years before the date of the filing of the petition, unless payments under the plan in such case totaled not less than -- (A) 100 percent of the allowed unsecured claims in such case; or (B)(i) 70 percent of such claims; and (ii) the plan was proposed by the debtor in good faith, and was the debtor's best effort."
Like 727(a)(8), the 6-year period is measured filing date to filing date. The discharge date of the prior Chapter 13 case does not matter.
The Two Exceptions
Exception 1: 100% Plan
If your prior Chapter 13 plan paid 100% of all allowed unsecured claims, the 6-year bar does not apply. Period. If every unsecured creditor who filed a valid claim was paid in full through the plan, you are free to file Chapter 7 immediately after the Chapter 13 discharge.
No judicial discretion needed. If the plan paid 100%, the exception is automatic. The only question is whether 100% was actually paid -- look at the trustee's final report for the exact percentage.
Exception 2: 70% Plan with Good Faith and Best Effort
If your prior Chapter 13 plan paid at least 70% of allowed unsecured claims, AND the plan was proposed in good faith, AND the plan represented the debtor's best effort, the 6-year bar does not apply.
This exception requires satisfying all three conditions. Courts examine whether:
- The debtor committed all projected disposable income to the plan
- The plan was not structured to minimize payments while preserving assets
- The debtor did not hide income or assets during the Chapter 13 case
- The debtor made genuine efforts to maximize payments to creditors
Court determination required. Unlike the 100% exception, the 70% exception is not automatic. The court must evaluate good faith and best effort. You should have documentation of plan payments ready and should discuss this with an attorney before filing.
Practical Reality: These Exceptions Rarely Apply
Most Chapter 13 plans pay far less than 70% to unsecured creditors. Nationally, the median Chapter 13 plan pays unsecured creditors somewhere between 0% and 10%. The national median is closer to 3%.
This means:
- The vast majority of debtors coming out of a completed Chapter 13 will need to wait the full 6 years before receiving a Chapter 7 discharge
- The 100% exception applies mostly to debtors who were already in good financial shape and filed Chapter 13 primarily to address secured debt arrearages
- The 70% exception applies to a slightly larger group, but "good faith" and "best effort" requirements add a layer of judicial scrutiny
Check your trustee's final report. If you are close to the 70% threshold, get the exact percentage from the Chapter 13 trustee's final report or accounting. Do not estimate. The difference between 69% and 70% is the difference between a 6-year wait and no wait at all.
How 727(a)(9) Compares to 727(a)(8)
| Feature | 727(a)(8) | 727(a)(9) |
|---|---|---|
| Prior discharge under | Chapter 7 or 11 | Chapter 12 or 13 |
| Waiting period | 8 years | 6 years |
| Exceptions? | None | Two (100% or 70%+) |
| Measured how? | Filing to filing | Filing to filing |
| Bars what? | Chapter 7 discharge | Chapter 7 discharge |
| Prevents filing? | No | No |
Chapter 12 Gets the Same Treatment
Section 727(a)(9) applies identically to prior Chapter 12 discharges (family farmer reorganization). The 6-year bar and both exceptions work the same way. Chapter 12 cases are much less common than Chapter 13, but if you completed a Chapter 12 plan, the same rules apply.
What If the Exception Does Not Apply?
If your prior Chapter 13 plan paid less than 70% of unsecured claims, you have three options:
- Wait 6 years from the prior filing date and then file Chapter 7. Use the date calculator to find your exact eligible date.
- File Chapter 13 again. Under Section 1328(f)(2), you can file a new Chapter 13 after only 2 years from the prior Chapter 13 filing and still receive a discharge.
- File Chapter 11. There is no discharge bar for Chapter 11 following any prior discharge.
Frequently Asked Questions
Can I file Chapter 7 after completing Chapter 13?
Yes, but you must wait 6 years from the filing date of the prior Chapter 13 case, unless the plan paid 100% or 70%+ in good faith. If neither exception applies, the full 6-year wait is required.
What is the 70% rule?
If your Chapter 13 plan paid at least 70% of allowed unsecured claims, and the plan was proposed in good faith as your best effort, the 6-year bar does not apply. All three conditions must be met, and the determination is made by the court.
How do I find out what percentage my plan paid?
Check the Chapter 13 trustee's final report, which is filed on the docket after all plan payments are completed. It lists the total paid to each class of creditors and the percentage of allowed unsecured claims that were paid.