How To Discharge Your Debt Using Chapter 13
A discharge under Chapter 13 bankruptcy occurs after the completion of the payment plan, which typically lasts from three to five years. In the meantime, you will be paying down your debt and gradually making your way toward a debt-free future.
You Do Not Have To Wait Three To Five Years For The Benefits
At first glance, a three- to five-year wait can seem daunting. However, it is important to be aware that you do not have to wait that long for the benefits of Chapter 13 to take effect. As soon as you file, an automatic stay will be issued that requires creditors to immediately cease all actions against you. The creditor harassment will stop right away.
Does Chapter 13 Discharge All Debts?
When you meet with me, Tennessee attorney Ben Sissman, I will educate you about how Chapter 13 will discharge your debt. Unlike Chapter 7, all of your debts can be included in your payment plan. If you have difficult debts like tax debt, they can be paid off through the plan.
Certain debts may ultimately be paid off at 100 percent through the plan, while other creditors may receive only pennies on the dollar. In many cases, only a small portion of payments will go to credit card debt and medical bills. When the payment plan has run its course, most debts that have gone unpaid will be completely discharged. So even if you end up paying only 10 percent of your credit card debt and medical bills through the plan, you will still have the peace of mind that comes with knowing that those debts will be eliminated in full.
If certain debts such as student loans, back child support and most taxes are not paid off as part of the payment plan, they will remain afterward. Similarly, if you have filed Chapter 13 before, there is the possibility that you may not be eligible for any discharge and that anything not paid off through the plan will still need to be paid.
Free Initial Consultation | Chapter 13 Bankruptcy Lawyer In Memphis
The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.