When you file for bankruptcy, you hope to have all your debts wiped away so that you don’t have to worry about the major expenses that have been haunting you. Dealing with these debts is your priority, so you’ll need to know about your dischargeable debts in Chapter 13 bankruptcy.
Dischargeable debts will be removed from your record, but what does that include, and how does it work? If you’re having some trouble understanding what debts you’ll be responsible for when you file for Chapter 13 bankruptcy, call a bankruptcy lawyer from Rowdy G. Williams Law Firm. We can answer your questions about bankruptcy and help you get debt-free.
What Is Dischargeable Debt?
Certain debts aren’t a priority, and these unsecured debts can be wiped from your record. Once this happens, you’re free of that debt. Creditors can’t contact you about them, and you won’t have to pay these debts off once you complete your repayment plan.
But what makes a debt dischargeable? This often depends on whether a debt is secured or not. A debt is secured when it’s attached to a piece of property that the creditor can take if you don’t pay.
For example, if you used a credit card and got into debt, the creditors can’t take the things you bought with that card. If you’re in debt for a car, however, and you don’t make payments, you could lose that vehicle because they can take it back.
Your dischargeable debts could include any of the following debts:
- Medical bills
- Previous tax obligations
- Unsecured personal loans, like payday loans
- Credit card debt
- Debt from some lawsuits
When Is That Debt Discharged?
Once you file for Chapter 13 bankruptcy and have your repayment plan approved, you might expect that debt to go away automatically. Unfortunately, it’s not so simple. You’ll need to first pay back much of the debts you’ve accrued that are included in your repayment plan.
You’ll be required to cover the priority debts, which the trustee can help with. So, if you owe a significant amount in child support or recent taxes, you’ll need to pay these off before the discharge order is prepared.
Once you’ve covered these debts, however, the courts will send out that order. This tells creditors that your debts have been wiped away and that they’ll no longer have the right to contact you about these older debts.
Reach Out to a Lawyer for Help
Chapter 13 bankruptcy should end the stress and frustration that you’ve experienced because of your debts. Fortunately, you may not even need to pay the full amount you owe, since some debts may be discharged after you’ve paid off your priority debts.
Before you start your claim, you’ll need to know about dischargeable debts in Chapter 13 bankruptcy. You’ll need to know what’s priority and what might not be necessary to pay at all. Fortunately, that’s where a lawyer from Rowdy G. Williams Law Firm can come in.
If you’re struggling with your Chapter 13 bankruptcy plan, speak to a bankruptcy lawyer about what’s necessary to pay and what you won’t have to worry about. Call us at 1-812-232-7400 or fill out the online form below.