The no-discharge agreement is not enforceable, but may be treated as
an admission that the debt is non-dischargeable as a willful and
malicious injury if an AP is filed. The bk wouldn’t toll the default times in the settlement agreement, at
least as to the debtor (the trustee may have some relief under 108 or
under 365 if the agreement is assumed, but that would require full
payment and would only make sense in a case with significant assets).
If debtor doesn’t timely pay, he may have a non-dischargeable judgment
for $15K (or more if the creditor can get the whole deal treated as
breached and void). If
debtor could propose a plan that pays a reasonably high percentage to
all unsecured creditors, this creditor might decide it isn’t worth it to
file an adversary when it is going to get most of its money anyway. The
creditor now has the same legal right to have it debt excluded from
discharge in a 13 as in a 7, but the economic calculations are
different. My concern is a 707 motion since he will be getting 2k a month going forward and now has all this money in the bank. Assuming eligibility, you can also put some in an IRA, pay your fees,
pay any taxes owed or that will be owed for this year, etc.
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