Overview Articles: What Happens to Debt in Chapter 13 Bankruptcy
Overview Articles: What Happens to Debt in Chapter 13 Bankruptcy
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Debt Discharge in Bankruptcy: Nondischargeable Debts
You can wipe out or “discharge” most debt types in Chapters 7 and 13, including credit card balances, medical and utility bills, home and car loan payments (if you return the house or vehicle to the lender), and personal loans. But bankruptcy doesn’t discharge all obligations. Nondischargeable debts include most student loans and taxes; fines, penalties, and criminal restitution; and domestic support obligations. Debts incurred through fraud; obligations the filer didn’t list correctly; some loans owed to stock, bonus, profit-sharing, and retirement plans; and debts related to operating a vehicle under the influence of drugs or alcohol also are nondischargeable in bankruptcy.
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Unsecured Debt: Priority vs. Non-Priority
Whether you file for Chapter 7 or Chapter 13 bankruptcy, it's important to determine which of your unsecured debts will be classified as priority debts and which will be assigned to the nonpriority category.
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Debts You Can Wipe Out in Chapter 13 Bankruptcy
Many debtors file for Chapter 13 bankruptcy to reorganize their debts and catch up on their missed mortgage or car loan payments through an affordable repayment plan. If you successfully complete your repayment plan, you will receive a bankruptcy discharge that wipes out your personal liability.
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A Chapter 13 case can last as long as five years. That’s a long time to go without incurring debt on some of the necessities of life. See what the best options are for dealing with post-petition debt
What Happens to Debt In Chapter 13 Bankruptcy
What Happens to Debt In Chapter 13 Bankruptcy
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How Medical Bills Are Treated in Chapter 13 Bankruptcy
Although you must repay some of your medical debts in Chapter 13 bankruptcy, you do this through the protection of your Chapter 13 repayment plan.
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What Happens to Your Timeshare and Timeshare Debt in Bankruptcy?
If you own a timeshare and are considering Chapter 7 bankruptcy, you may have questions about what will happen to your timeshare (can you keep it or will you lose it?) and whether bankruptcy will get rid of any debt you owe on the timeshare. The answers to these questions largely depend on the type of
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What Happens to a Car Lease in Chapter 13 Bankruptcy?
What happens to your car lease in Chapter 13 bankruptcy depends on whether you are behind on your payments and on what the bankruptcy trustee decides to do with the lease – the trustee can assume or reject the car lease.
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The Truth About "Pay Day" Loans and Filing for Bankruptcy
For those who are struggling to pay their bills and who are falling behind on monthly payments, payday loans may seem like an appealing option. Payday loans...
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Will Bankruptcy Stop the IRS From Collecting Tax Debts?
The automatic stay will stop the IRS from collecting taxes debt that you owe once you file a Chapter 7 or Chapter 13 bankruptcy. But depending upon the nature of the tax debt you owe, the IRS may be permitted to collect from you later.
Secured vs Unsecured Debt
Secured vs Unsecured Debt
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Unsecured Debt: Priority vs. Non-Priority
Whether you file for Chapter 7 or Chapter 13 bankruptcy, it's important to determine which of your unsecured debts will be classified as priority debts and which will be assigned to the nonpriority category.
