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Dischargeable Debts ? As opposed to nondischargeable debts, these debts are up for discharge (elimination) when your case concludes. Some examples of dischargeable debts in Chapter 13 include credit card debt, medical bills, utility bills, and personal loans.
The Chapter 13 Hardship Discharge After confirmation of a plan, circumstances may arise that prevent the debtor from completing the plan. In such situations, the debtor may ask the court to grant a "hardship discharge." 11 U.S.C. § 1328(b).
The Chapter 13 Trustee is required to report to the Bankruptcy Court if you fail to make payments on time or in full. The Court may then enter an order dismissing your case and withdrawing the protection of the Bankruptcy Court. If that occurs, you then could be subject to creditor collection efforts and other actions.
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.
Unsecured creditors have more limited protections in chapter 13. However, not all unsecured creditors have the same rights: those with priority claims are entitled to full repayment, while those with non-priority claims are entitled only to a portion of the debtor's income, whether or not it fully repays the debt.