What Kind Of Debt Is Typically Dischargeable In A Chapter 13 Bankruptcy?
The discharge-ability is the same for chapter 7 and 13. All of those debts are treated the same way no matter what chapter you are filing under.
Would The Debt Be The Same That Would Not Be Forgiven In A Chapter 13 As In The Chapter 7?
Yes. You will not be able to discharge domestic support obligations, recent tax debts, and student loans; just the same as the chapter 7 or any other chapter that you are filing under.
What Will Someone Be Able To Keep In A Chapter 13 Bankruptcy?
The one advantage of the chapter 13 is you will not lose anything at all as long as you go through the chapter 13 the right way and everything comes out as planned. It is not liquidation in the same way that a chapter 7 is. You get to keep the house, car, it does not matter how much equity you have in them or how much they are worth. That is the big advantage of chapter 13. The exemptions do not really apply because you are not creating a bankruptcy estate that is going to be liquidated like a chapter 7.
What Are The Major Differences Between A Chapter 7 And A Chapter 13 Bankruptcy?
When talking about chapter 7, the main difference conceptually is liquidation. They are going to take everything that you own, minus the things that are exempt. They are going to put it into a theoretical bankruptcy estate and they will sell that estate, distribute what is leftover to your creditors and you get a discharge. In practicality, that usually is nothing at all, but if you do have some significant assets that is usually how it should work.
In a chapter 13, there is no bankruptcy estate. You are just reorganizing your debts and paying back your secured debts and unsecured debts. All of that is going into a chapter 13 plan that will be paid off over a period of years. After you finish paying that plan off, you will get a discharge on the remaining debt that you have.
If you want to know What Happens In A Chapter 13 Bankruptcy And The Differences Between Chapter 7 And Chapter 13, call the Koehler Law Offices PLLC for a FREE 20 Minute Initial Consultation at (801) 200-3795 and get the information and legal answers you’re seeking.