The Chapter 13 Debt Discharge
People who file Chapter 13 only repay a portion of their debt while other portions of their debt is typically discharged. After the Chapter 13 repayment plan is complete, the debtor receives a discharge of all remaining eligible debts. The amount and type of debt that may be discharged vary widely from person to person, and can be negotiated by a skilled bankruptcy lawyer.
How Is Debt Discharged in Chapter 13?
While Chapter 7 bankruptcy requires liquidation of some of your assets for repayment of your debt, Chapter 13 bankruptcy allows you to reorganize your debt and repay a small part before you receive a discharge on your remaining eligible debts. In Chapter 13 bankruptcy, this may include unsecured debts such as medical bills and credit card debt.
Once you have an approved repayment plan, you will make payments to the trustee, who will then distribute your payments to your creditors based on priority.
After completing your payment plans, a judge will discharge the rest of your qualifying debts.
What Debts Cannot Be Discharged in Chapter 13?
Some debts cannot be discharged in Chapter 13 bankruptcy. These include:
- Certain taxes
- Child support and spousal support payments
- Most student loans
- Some types of personal injury or wrongful death judgments
Because every case is different, contact bankruptcy attorneys who are prepared to answer all your questions and offer guidance through the entire bankruptcy process and explain Chapter 13 discharge.
How Our Attorneys Can Help You
Weintraub & Selth, APC, provides Chapter 13 bankruptcy representation to individuals and couples in the Los Angeles area and throughout California. During your confidential consultation, we can examine and analyze the details of your situation, including your income, debts and assets. After careful analysis and discussion we can discuss your debt relief options, which can include bankruptcy. If Chapter 13 is the right solution, we can help you create a repayment plan that is manageable. We will also guide you through interactions with the Chapter 13 bankruptcy trustee, explain all the steps involved with Chapter 13 and assist you throughout the entire process.
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