What types of debts can be discharged through bankruptcy?

What types of debts can be discharged through bankruptcy?

Chapter 7 Bankruptcy Discharge Wipes Out Most Debts Forever

  • credit card debt.
  • medical bills.
  • personal loans and other unsecured debt.
  • unpaid utilities.
  • phone bills.
  • your personal liability on secured debts, like car loans (if there’s no reaffirmation agreement)
  • deficiency balances after a repossession or foreclosure.

Does Chapter 7 wipe Judgements?

Your bankruptcy discharge will wipe out your obligation to pay back the deficiency judgment. However, if the lender placed a lien on any of your properties using the deficiency judgment, Chapter 7 bankruptcy will not automatically remove that lien (your discharge only eliminates your personal liability for debts).

How do I know what debts were discharged?

The discharge order sent by the Clerk’s Office will contain a general statement about the categories of debts that are discharged. The individual debts that are discharged will not be listed on the discharge order.

Can a credit card debt be discharged in Chapter 13 bankruptcy?

Since credit card debt is considered nonpriority unsecured debt, any outstanding balance remaining after you complete your repayment plan will be discharged. Medical bills. If you had to incur debt because your medical care was not fully covered by insurance, you can discharge your medical bills through Chapter 13 bankruptcy.

What happens if you get a chapter 13 discharge?

After you finalize the payment outlined in your payment plan, you will get a Chapter 13 discharge. What this means is all your debts will be discharged with a few exceptions. Some of the debts that will not be discharged include:

Can a 30 year mortgage be discharged in Chapter 13?

Long-term debts, like a 30-year mortgage, don’t need to be paid in full through the Chapter 13 plan. However, if you’re behind on payments, you’ll need to make them up in the plan. If you surrender the collateral, the debt becomes a nonpriority unsecured debt. Priority unsecured debts.

Can a debtor be discharged under the Bankruptcy Code?

Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523 (a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy.

What debts are excluded from Chapter 13 discharge?

  • Property taxes incurred within the last year before you filed for bankruptcy
  • Penalties associated with nondischargeable taxes
  • Recent income tax obligations
  • Excise taxes
  • Employment taxes
  • Customs duties
  • such as payroll taxes

    What happens after completing a chapter 13 bankruptcy?

    Although a Chapter 13 bankruptcy stays on your record for years, missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit, and may be more complicated to explain to a future lender than bankruptcy. You’ll lose all your credit cards.

    When does a chapter 13 bankruptcy get discharged?

    Going through a Chapter 13 bankruptcy is a time-consuming process that can take as long as five years, depending on the repayment plan approved by the bankruptcy court. Getting a discharge in a Chapter 13 case generally takes between six and eight weeks after making your plan’s final payment.

    Which do debts remain after your chapter 13 discharge?

    Any debts not provided for in the plan will remain, and the debtor will have to pay them in full, even after discharge. Additional exceptions to a Chapter 13 discharge may include: claims for spousal and child support, educational loans, drunk driving liabilities, criminal fines and restitution obligations, and certain long-term obligations (such as home mortgages or auto payments) that extend beyond the term of the plan.

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