Filing bankruptcy under Chapter 13 could help you eliminate your debts by gradually paying some of them down and having others completely forgiven by the court.
This debt discharge typically comes at the end of the terms as laid out in the Chapter 13 bankruptcy repayment plan.
Once your debts are discharged, creditors can no longer start legal action to try and collect the discharged debt.
The laws about discharging debt in a Chapter 13 bankruptcy can be complicated. A local bankruptcy attorney may be able to answer your questions and act as a resource as you navigate the world of bankruptcy and debt.
To get a free case evaluation with a bankruptcy attorney near you, simply complete the free form on this page and we'll connect you right away. An attorney can answer your questions and help you learn more about Chapter 13 bankruptcy.
There are several conditions that have to be met for someone to be eligible for a Chapter 13 bankruptcy discharge after the completion of the repayment plan. These requirements can vary based on the Chapter 13 bankruptcy repayment plan, but there are some general guidelines.
First, the debtor must certify that all domestic support obligations, like child support and alimony, have been paid. Also, a anyone seeking a Chapter 13 discharge may not have gotten a discharge two years previously for Chapter 13, and four years previously for Chapter 7, 11 and 12 bankruptcy cases.
Finally, to get a discharge for any type of bankruptcy you must finish a debtor education course. These may be done in person, online or over the phone, but this course is generally the last hurdle before you can achieve your fresh start.
There are somewhat more broad definitions of the kind of debt that can be discharged in a Chapter 13 bankruptcy than there are in a Chapter 7 bankruptcy.
Debts that are dischargeable in a Chapter 13 bankruptcy that may not be included in a Chapter 7 include debts for willful and malicious injury to property, debts from property settlements in divorce, and debts taken on to pay nondischargeable tax obligations.
Keep in mind, there are also debts that can't be discharged in bankruptcy. The debtor is still responsible for these debts after the repayment plan is concluded. These nondischargeable debts include:
To learn more about Chapter 13 bankruptcy debt and debt discharge, you can talk to a bankruptcy attorney. One of our sponsoring bankruptcy attorneys may be able answer questions and offer you guidance. To connect with a lawyer, simply fill out the form below for a free case evaluation.