What happens after my Chapter 13 is discharged?

Once your Chapter 13 proceeding closes, and you’ve finished your repayment plan, you’ll get a discharge order that clears the remaining balance of qualifying debt. This debt includes most kinds of “non-priority unsecured debts,” including credit cards, medical bills, personal loans not secured by collateral, and more.

Does bankruptcy eliminate Judgements?

The attachment of a judgment to a debt does not change the debt’s eligibility for discharge through bankruptcy, and judgments associated with debts such as these are typically eliminated in the bankruptcy process.

What happens if a Judgement is placed against you?

A judgment is a court order that is the decision in a lawsuit. If a judgment is entered against you, a debt collector will have stronger tools, like garnishment, to collect the debt. All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords.

Can a credit card debt be discharged in Chapter 13 bankruptcy?

Since credit card debt is considered nonpriority unsecured debt, any outstanding balance remaining after you complete your repayment plan will be discharged. Medical bills. If you had to incur debt because your medical care was not fully covered by insurance, you can discharge your medical bills through Chapter 13 bankruptcy.

How are credit cards classified in Chapter 13?

Credit cards generally have the lowest priority in a Chapter 13 plan. (To learn more about how Chapter 13 works, see Chapter 13 Bankruptcy .) Bankruptcy law sorts your debts into different classes. The three main debt classifications are general unsecured debt, priority unsecured debt, and secured debt.

How are credit cards paid in Chapter 7 bankruptcy?

Depending the quantity of debt and amount of disposable income, the plan might pay pennies on the dollar or might pay creditors in full. In chapter 7, credit cards and other unsecured debts receive payment only if the debtor owns valuable property that the trustee can sell.

Can a debt be discharged in a Chapter 7 bankruptcy?

If you pay your tax obligation using a credit card, that debt normally considered nondischargeable in a Chapter 7 bankruptcy. However, in Chapter 13 you can discharge debts you incurred to pay nondischargeable tax obligations. Domestic support obligations such as alimony or child support are always nondischargeable.