Does chapter 13 bankruptcy discharge any debts?

Chapter 13 is one form of bankruptcy. In this form, the goal is reorganize some types of debts to make the debts easier to repay. With that in mind, realize, too that this type of bankruptcy does discharge some types of debts. How many of your debts, and the types of debts that will discharge, depends on the amount of money you make and the type of debt you have. In all situations, it is advisable to work with an attorney throughout the process of filing bankruptcy to ensure you file the right type of bankruptcy.

Debt Discharge

In Chapter 13 bankruptcy, most priority types of debts, secured debts and other guaranteed debts are reorganized to make the debt easier to repay. You will repay these debts over a period of three to five years through a payment plan. Many types of unsecured debts are discharged in part of in full, including:

• Many types of credit card debt
• Some types of medical debt
• Some types of secured debt if you do not plan to keep the asset, such as a car or a home.

In each situation, the amount of the debt paid back to the lender depends on the type of loan. In most cases, the lender must not get less than what the lender would have received if you had filed Chapter 7 bankruptcy instead. In some cases, as little as one percent of unsecured debt will be repaid through the Chapter 13 bankruptcy plan.