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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.
In Chapter 13 bankruptcy, the debtor proposes a repayment plan to manage a portion of their debts over three to five years. The remaining debts are typically discharged at the end of the repayment plan. Monthly payment amounts vary greatly, as one of the factors they are based on is disposable income.
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."
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."
A hardship discharge is granted to help a debtor who cannot complete a Chapter 13 debt repayment plan for reasons that are completely outside the debtor's control. It will not be granted to debtors who cause their own difficulties, such as debtors who quit their jobs while making payments in a Chapter 13 plan.