Ezel / IRS Rulings / 1315022
Chief Counsel Advice 1315022 Released April 12, 2013 Advice

CCA 1315022: Interpreting the two-year Chapter 13 discharge rule

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This page covers one taxpayer's ruling from 2013, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2013
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advice interprets the phrase “such order” in Bankruptcy Code section 1328(f)(2). The memo reads that phrase as referring to the order for relief under the bankruptcy chapter, because that is the most recent use of “order” in the provision. On that reading, a debtor is not entitled to a Chapter 13 discharge if the debtor received a Chapter 13 discharge during the two-year period before the order for relief in the current Chapter 13 case. The advice notes that a reading tied to the current case's discharge order would make little sense because the debtor might not receive a discharge in that case.

Ruling snapshot

  • Question: What does “such order” refer to in Bankruptcy Code section 1328(f)(2)?
  • Outcome: Advice given, it refers to the order for relief in the present case.
  • Key authorities: Bankruptcy Code § 1328(f)(1) and (2).

Full text (IRS public release)

ID: CCA_2013030710253114 Number: 201315022
Release Date: 4/12/2013
Office: --------------
UILC: 9115.00-00

From: -----------------
Sent: Thursday, March 07, 2013 10:25:32 AM
To: ---------------
Cc:
Subject: RE: Interpretation of BC sec 1328(f)(2)

I agree with the trustee on this one. When 1328(f)(2) refers to “such order” I think it has
to be referring to the last time the term “order” was used, which was in (f)(1). I think
“such order” was used so that “order for relief under this chapter” wouldn’t have to be
repeated. Section (f) does not use the term “order” so I don’t think (f)(2) would be
interpreted as referring to the prior discharge order.

So, I think the debtor isn’t entitled to a chapter 13 discharge if he received a chapter 13
discharge during the 2 year period preceding the order for relief in the present chapter
13 case. In fact, a rule referring to the discharge order in the present case wouldn’t
make a lot of sense, considering that the debtor may not be getting a discharge in the
present case, and that debtors rarely get a discharge in a prior chapter 13 within 2 years
of the present proposed discharge, because the present chapter 13 plan would usually
be 3-5 years long.

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