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Experiencing a bankruptcy dismissal can be an overwhelming experience, especially when creditors start reaching out to you for payment. In such situations, one way to handle this is through debt settlement. Debt settlement is negotiating with creditors to reorganize the debt by agreeing on a payment schedule.
If a creditor objects to your repayment plan, you will have an opportunity to respond to the objection. If you are able to overcome the objection, then your repayment plan will be approved, and you can proceed with your bankruptcy case.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
A Chapter 13 petition for bankruptcy will likely necessitate a $500 to $600 monthly payment, especially for debtors paying at least one automobile through the payment plan. However, since the bankruptcy court will consider a large number of factors, this estimate could vary greatly.
Unlike chapter 7, creditors do not have standing to object to the discharge of a chapter 12 or chapter 13 debtor. Creditors can object to confirmation of the repayment plan, but cannot object to the discharge if the debtor has completed making plan payments.