Are Debts Discharged at the End of Chapter 13 Bankruptcy?
When times are tough, you want to ensure that your debts are discharged at the end of Chapter 13 Bankruptcy. Contact Bournakis & Mitchell P.C. for information.
What Is a Chapter 13 Discharge?
There are many reasons someone may seek to file for Chapter 13 bankruptcy. It can be because of a job loss, separation proceedings, medical bills, or unpaid taxes. Fortunately, with a Chapter 13 bankruptcy discharge, you can reorganize the debts incurred, and you will be able to keep property obtained with a property settlement agreement with more affordable monthly payments.
A Chapter 13 discharge is a court-ordered release of the debtor from all their debts except nondischargeable tax obligations debts, child support, and guaranteed educational loans. The court gives it after the debtor completes all of their payments as ordered in the plan.
Consider consulting Chapter 13 lawyers from a reputable law firm like Bournakis & Mitchell P.C. for any bankruptcy questions. Developing a solid attorney-client relationship with a well-established law firm can provide ongoing legal guidance for all your needs.
What Is a Chapter 13 Bankruptcy?
Consumers can reorganize their unsecured debts and secured debt in Chapter 13 bankruptcy and repay them over time. It can be a good option for priority debts, such as mortgages, car loans, or student loans.
To qualify for a Georgia Chapter 13 bankruptcy, you must:
Have regular income that is enough to pay your monthly expenses and make your payments on secured debts (e.g., mortgage).
Be able to afford your monthly payments on nonpriority unsecured debts (e.g., credit cards) over the life of the plan.
Not have equity in real estate or motor vehicles unless they are a debtor’s homestead exemption or exempt property.
A Georgia bankruptcy attorney with relevant experience may be able to provide valuable information and advice before you attend bankruptcy court.
How Will I Know When My Chapter 13 Is Over?
Chapter 13 bankruptcy is a repayment plan for those with a steady income. The length of the repayment plan can be anywhere from three to five years, depending on the person’s income and debt. It is a reorganization of debts, not an elimination of debt.
Chapter 13 ends when the person has repaid all debts included in their repayment plan.
When Is Your Chapter 13 Discharged?
The discharge from Chapter 13 bankruptcy occurs if the debtor has made all the payments for the past six months. Their debt will no longer be on their credit report, and they will no longer be under Chapter 13 bankruptcy protection.
Chapter 13 differs from Chapter 7 because it does not require liquidating assets or surrendering property ownership. It also does not require credit counseling or repayment plans as strict as those required by Chapter 7.
It includes a repayment plan for creditors negotiated with the debtor before filing for Chapter 13 bankruptcy protection. Chapter 13 can only be filed in Georgia by individuals with enough total monthly income to repay some or all their debts. They will still have to pay nondischargeable tax obligations and debts arising during the process.
The Benefits of Chapter 13
Chapter 13 bankruptcy is a process that has been used for decades. It is a way for individuals to pay off debts dischargeable under the plan in up to five years. Chapter 13 enables them to eliminate worry about the government taking their property to pay off debts.
Those people who filed for Chapter 13 bankruptcy will have remaining debts discharged at the end of the process, including:
- Credit card debt
- Property settlements
- Educational loans
- Medical bills
They may also get rid of any wholly unsecured junior lien or judgment against them that existed before they filed for Chapter 13.
What Happens at the End of Chapter 13 Bankruptcy?
Skilled lawyers can explain your bankruptcy case to you. The bankruptcy process can be broken down into two phases: the pre-bankruptcy phase and the post-bankruptcy phase.
In the pre-bankruptcy phase, you need to work with your creditors and develop a feasible repayment plan. Once they agree on this repayment plan, they will file it in court as an official debt relief agreement (DRA). The DRA becomes legally binding when filed in court.
In the post-bankruptcy phase, your creditors will no longer be able to contact you or take legal action. Bankruptcy lawyers in Cartersville could advise you regarding any necessary measures.
What Happens to Unsecured Debt at the End of Chapter 13?
Chapter 13 bankruptcy allows individuals to keep their assets, including property and vehicles. Chapter 13 bankruptcy provides individuals with a fresh start.
The goal of Chapter 13 is to allow the debtor to repay certain debts in three or five years. For this plan to work, the debtor must make monthly plan payments during this period. All remaining plan debts are eliminated at the end of the period.
How Long Does Chapter 13 Take To Discharge in Georgia?
Chapter 13 bankruptcy is a debt reorganization under the United States Bankruptcy Code. It is an excellent way for people experiencing financial difficulties to devise a plan to repay all or part of their debts.
On average, Chapter 13 bankruptcy lasts three to five years. The length of time depends on the case’s circumstances. The debtor must make monthly payments to a trustee who will distribute the money according to the plan.
When Does a Chapter 13 Discharge?
Chapter 13 bankruptcy permits consumers to reorganize their debts and repay them over time. Chapter 13 can be a good option for those who have secured consumer debts, such as:
- Mortgage payments
- Domestic support obligations
- Car loan payments
- Personal loans
- Student loans
- Tax debts
In most cases, the bankruptcy trustee will file a motion with the court asking for the discharge of debt to be approved.
How to Confirm My Chapter 13 Discharge Date?
You can confirm your chapter 13 discharge date by contacting the court where your case is filed. You can also contact the bankruptcy trustee that is handling your case.
Can a Georgia Bankruptcy Attorney Help You?
Experienced attorneys can help you get back on track and start over. They will help you file for bankruptcy, and provide you with debt relief and a fresh financial start.
If your debts are overwhelming and you’re struggling to make ends meet, it may be time to consider filing for bankruptcy.