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 attorney.
Weintraub & Selth, APC, provides Chapter 13 bankruptcy representation to individuals and couples in the Los Angeles area and throughout Southern California. When you call us for a confidential consultation we will discuss the particulars of your situation. We will examine and analyze the details including your income, debts and assets. After careful analysis and discussion we will offer an overview of your debt relief options which may include bankruptcy. If Chapter 13 is the right solution, our attorneys will use their resources and decades of experience to ensure your repayment plan is manageable and your discharge includes all eligible debts. 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.
Repaying and Eliminating Some of your Debt
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. This typically is achieved after approximately three to five years of adhering to an approved repayment plan. The amount you must repay is determined in part by how much disposable income you have. Disposable income is typically defined as money you have left after paying your necessary living expenses.
After creating a strategic plan to help you repay your debt in a realistic way, we will structure the debts that will be included in the repayment plan as well as the percentage of them that you will repay. The more of your debt we can discharge, the lower the percentage of debt you will have to repay.
After completing the repayment plan, your remaining eligible debts will be discharged. In Chapter 13 bankruptcy, this may include unsecured debts such as medical bills and credit card debt. 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 of your questions and offer guidance through the entire bankruptcy process and explain Chapter 13 discharge.