A Guide to Debt Discharge in Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, you are required to make a payment for 3 to 5 years based on your income level. If you are eligible for Chapter 7 but have to file for Chapter 13 for other reasons, such as having filed Chapter 7 in the past 8 years, you may still be able to complete a 3-year plan instead of a 5-year plan.
At the end of your Chapter 13 plan, any remaining dischargeable debts will be discharged. However, certain debts like IRS debt less than 3 years old, child support, and student loans are not dischargeable. It’s important to understand which debts will still need to be paid off even after completing your Chapter 13 plan.
Debts That Are Not Dischargeable in Chapter 13
While unsecured debts like credit cards, personal loans, and medical bills can be discharged in Chapter 13, debts such as tax debt more than 3 years old, child support, and student loans will not be discharged. Creditors may also challenge the dischargeability of certain debts if they believe there was fraud or willful behavior involved.
Chapter 13 allows you to prioritize which debts to pay off during your repayment plan. For example, if you have significant tax debt that must be paid, you may allocate more of your payments towards that debt and less towards unsecured debts that will be discharged at the end of your plan.
Contact Us for a Low-cost Initial Strategy Session
If you have questions about Chapter 13 bankruptcy and how it can help you get rid of debts, contact a Chapter 13 bankruptcy attorney in OKC at Debt Line Law Office at 405-563-7888 for a low cost initial strategy session. We can help you understand your options and create a plan for a brighter financial future. Don’t wait to take control of your finances – call a Oklahoma City bankruptcy lawyer today!