Chapter 13 Bankruptcy Discharge
At the end of the time period for your payment plan, you will be required to attend a budget counseling session with an agency approved by the bankruptcy court. This is similar to the credit counseling session you attended before filing for bankruptcy. You will also have to prove you are current on any child support or spousal support obligations. After that, if there are debts remaining, they will be wiped out and the creditor cannot try to collect the debt ever again.
Creditors who violate the discharge, may be brought into court and punished by the court.
When you emerge from chapter 13, you will be current on any secured debt, like a mortgage or a car loan, and you will have no unsecured debt. Like chapter 7, you get a fresh start.
Legal Editor: Thomas M. Denaro, March 2015
Changes may occur in this area of law. The information provided is brought to you as a public service with the help and assistance of volunteer legal editors, and is intended to help you better understand the law in general. It is not intended to be legal advice regarding your particular problem or to substitute for the advice of a lawyer.