Willful and Malicious Injury Debts in Bankruptcy

How does the willful and malicious injury exception actually work?

Section 523(a) lists debts that a discharge does not reach. Among them is a debt for willful and malicious injury by the debtor to another entity or to the property of another entity (11 U.S.C. § 523(a)(6)). Two features of that language do a lot of work. First, it describes the debtor's conduct, not the label on the lawsuit — the question is what the debtor did, not what the complaint was captioned. Second, it covers injury to property as well as injury to a person, which is why it reaches things like deliberate destruction of someone else's property and not only assault claims. This exception is not self-executing. Under 11 U.S.C. § 523(c), certain exceptions apply only if the creditor asks the court to determine them, and Fed. R. Bankr. P. 4007(a) allows a debtor or any creditor to file a complaint to determine whether a debt is dischargeable. If nobody files, the debt is commonly discharged along with everything else.

• The subsection is 11 U.S.C. § 523(a)(6) — willful and malicious injury by the debtor.
• It reaches injury to another entity or to the property of another entity.
• It is raised by a complaint under Fed. R. Bankr. P. 4007, not applied automatically by the clerk.

What changes the answer in a particular case?

Several variables move the outcome, and most of them are procedural rather than moral. Whether a creditor actually files a timely complaint is the single largest one — the § 523(c) exceptions are the category the Code makes creditor-driven. The chapter you file under matters too, because Chapter 13's completed-plan discharge and Chapter 7's discharge do not carve out the same debts. Whether the underlying judgment describes intentional conduct or something closer to negligence matters, because the statute asks about willful and malicious injury by the debtor. Finally, listing matters in its own right: 11 U.S.C. § 523(a)(3) addresses debts neither listed nor scheduled under § 521(a)(1) with the creditor's name, where the creditor lacked notice in time to act. Bankruptcy court guidance is blunt that debts for willful injury may be excepted from discharge if the creditor successfully brings a nondischargeability action (Bankr. N.D. Iowa official page — FAQs: Debtor).

What does federal law say about § 523(a)(6) and § 1328(a)(4)?

Two provisions carry most of the weight. Section 523(a) opens by stating that a discharge under section 727, 1141, 1192, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from the listed debts, and paragraph (6) is the willful and malicious injury exception. Notice which discharges that list names — and which it does not. A Chapter 13 discharge after completed plan payments comes from 11 U.S.C. § 1328(a), which is not in the § 523(a) opening list. Chapter 13 instead runs its own carve-outs. Section 1328(a)(2) incorporates specific paragraphs of § 523(a), and § 1328(a)(4) separately excepts a debt for restitution, or damages, awarded in a civil action against the debtor as a result of willful or malicious injury by the debtor that caused personal injury to an individual or the death of an individual (11 U.S.C. § 1328(a)(4)).

Where do state or local rules differ?

The exception itself is federal and reads the same in every state, so this is not a page where you need your state's numbers. What varies is local procedure. The Federal Rules set the outer frame: Fed. R. Bankr. P. 4007(c) fixes 60 days after the first date set for the § 341(a) meeting for a § 523(c) complaint, and Rule 4007(d) directs the court to set a filing time when a Chapter 13 debtor moves for a hardship discharge under § 1328(b). Districts then implement that. The District of Utah requires at least 30 days' notice of the time fixed for a § 523(a)(6) complaint on a hardship-discharge motion (Bankr. D. Utah LBR 4007-1). The Eastern District of Texas requires the proposed hardship-discharge order in Chapter 13 cases to state a § 523(a)(6) complaint deadline no later than 60 days from entry of that order (Texas Eastern Local Rules — effective August 22, 2022). Check your own district's local rules and deadlines.

What does this look like in practice?

Practically, the sequence usually runs like this. You file, the court sets a § 341(a) meeting, and the clerk notices all creditors — including the person holding the judgment — of the deadline to challenge dischargeability. Fed. R. Bankr. P. 4007(c) requires at least 30 days' notice of that time. If the judgment creditor files a complaint, that starts an adversary proceeding, and the Part VII rules govern it under Rule 4007(e). The court, not the trustee and not you, decides whether the debt fits § 523(a)(6). If no complaint is filed within the time set, the deadline can be extended only on a motion filed before it expires, after notice and a hearing and for cause. Two things people often confuse: the discharge order relieves personal liability but valid pre-petition liens generally pass through unaffected (Bankr. N.D. Iowa official page — FAQs: Debtor), and dismissal of a case is not a discharge of anything (U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide).

What documents and information are involved?

The judgment or complaint from the underlying lawsuit is the central document, because its findings about your conduct are what a court examines against the § 523(a)(6) standard. Beyond that, this is ordinary schedule work. The creditor must be listed with the name known to you, in time to permit a timely filing — § 523(a)(3) exists precisely because an unlisted creditor who never got notice may keep a claim alive. Court instructions note that information in your petition, schedules, and statement of affairs is submitted under penalty of perjury and that inaccuracies are corrected by filing an amendment (Bankr. W.D. Ky. official guidance — Guide to Filing Bankruptcy without an Attorney). Filing costs are separate from any of this: the Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)) plus a $78 administrative fee and a $15 trustee surcharge, and the Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)) plus a $78 administrative fee.

• The underlying judgment, verdict, or settlement documents and any findings about intent
• Complete creditor listing on your schedules, with the creditor's name and address
• Any notice from the clerk stating the deadline to file a dischargeability complaint
• Records of what you have already paid toward the judgment

What should you ask a lawyer about this?

This is one of the narrow corners of consumer bankruptcy where the wording of an old judgment can decide the outcome, so bring the paperwork and ask targeted questions. A bankruptcy attorney can read the findings in your judgment against the statutory language and tell you how courts in your district have handled similar records. Court guidance is consistent that clerks cannot give legal advice and that you should consult a qualified attorney (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter: What can Bankruptcy do for you? What will it do to you?).

• Does the language of my judgment describe intentional conduct, or something else?
• How does 11 U.S.C. § 1328(a)(4) apply if the award was for personal injury or death?
• What is the § 523(c) complaint deadline in my case, and has anything extended it?
• If a complaint is filed, what does defending an adversary proceeding involve and cost?
• Would a different chapter change how this particular debt is treated?

Frequently asked questions

Can you discharge a lawsuit judgment in bankruptcy?

Many money judgments are treated like other unsecured debts, but a judgment for willful and malicious injury by the debtor falls within 11 U.S.C. § 523(a)(6) and can be excepted from discharge if the creditor obtains that determination. The label on the judgment is not decisive; what the debtor did is. A discharge also voids a judgment only as to debts actually discharged (11 U.S.C. § 524(a)(1)).

Is an assault judgment automatically nondischargeable?

No. Exceptions under 11 U.S.C. § 523(c) are creditor-driven. Fed. R. Bankr. P. 4007(a) lets a debtor or any creditor file a complaint to determine dischargeability, and Rule 4007(c) generally requires a § 523(c) complaint within 60 days after the first date set for the § 341(a) meeting of creditors. Bankruptcy court guidance describes willful-injury debts as excepted if a creditor successfully brings a nondischargeability action.

Does Chapter 13 treat these debts differently from Chapter 7?

The provisions differ. Section 523(a) applies by its terms to discharges under §§ 727, 1141, 1192, 1228(a), 1228(b), and 1328(b). A completed-plan Chapter 13 discharge under § 1328(a) has its own list, and § 1328(a)(4) excepts restitution or damages awarded in a civil action for willful or malicious injury causing personal injury to an individual or the death of an individual. A hardship discharge under § 1328(b) is treated differently again.

What is the deadline for a creditor to challenge my discharge of this debt?

Under Fed. R. Bankr. P. 4007(c), a complaint under § 523(c) must generally be filed within 60 days after the first date set for the § 341(a) meeting of creditors, and the clerk must give creditors at least 30 days' notice. A party in interest may move before the time expires, and the court may extend it after notice and a hearing and for cause. Local rules add district-specific requirements.

What happens if I do not list the judgment creditor on my schedules?

It can cost you the discharge of that debt. Section 523(a)(3) addresses debts neither listed nor scheduled under § 521(a)(1) with the creditor's name, if known, in time to permit the creditor to act. Schedules are submitted under penalty of perjury, and court guidance directs debtors to correct inaccuracies by filing an amendment with the clerk's office; a fee may apply to amend creditor schedules.

Does the automatic stay stop collection on this kind of judgment while my case is pending?

Filing generally triggers a stay of most collection actions, but there are limits worth knowing. Court guidance notes that the stay does not protect you from most criminal proceedings or most domestic relations matters, and that prior dismissed cases within the past year can shorten or eliminate the stay (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Whether a particular action is stayed is case-specific.

Does a discharge get rid of a lien tied to the judgment?

Generally no. A discharge order relieves the debtor of personal liability for the discharged debt, but valid liens against the debtor's property that existed before filing generally pass through the bankruptcy unaffected (Bankr. N.D. Iowa official page — FAQs: Debtor). Some liens may be avoidable during the case or handled through a plan. That is a separate analysis from dischargeability under § 523(a)(6).

Sources

• 11 U.S.C. § 523 — Exceptions to discharge · official source
• 11 U.S.C. § 1328 — Discharge (Chapter 13) · official source
• 11 U.S.C. § 524 — Effect of discharge · official source
• Fed. R. Bankr. P. 4007 — Determining Whether a Debt Is Dischargeable · official source
• Bankr. D. Utah LBR 4007-1 — Time for filing complaint under 11 U.S.C. § 523(a)(6) on motion for hardship discharge in Chapter 13 case
• Texas Eastern Local Rules — effective August 22, 2022
• Bankr. N.D. Iowa official page — FAQs: Debtor
• U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide
• U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter: What can Bankruptcy do for you? What will it do to you?
• Bankr. W.D. Ky. official guidance — Guide to Filing Bankruptcy without an Attorney
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

Related

• Which debts get discharged
• Chapter 7
• Chapter 13
• The automatic stay
• Build your personalised roadmap
• Find your local bankruptcy court