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Since a chapter 12 or chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.
After Plan Completion: After all payments have been completed, the Chapter 13 Trustee will file a Motion to Return any Excess Funds to Debtor and to Terminate any Payroll Deduction by Employer. If the Motion is granted, the Court will enter an order granting the motion and issue two notices.
In Chapter 13 bankruptcy, you pay the Chapter 13 bankruptcy trustee the monthly payment required by your Chapter 13 repayment plan and the trustee distributes the funds to creditors each month.
Be Prepared for One More Round of Paperwork A Chapter 13 payment plan doesn't automatically cease once you make your final payment. You must complete the compulsory paperwork and your attorney has to file for an official dismissal of 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.
The Chapter 13 Process Take Mandatory Credit Counseling Course. ... File Your Chapter 13 Bankruptcy Paperwork. ... Attend the 341 meeting of creditors. ... Start Paying Your Chapter 13 Plan Payment. ... Complete the Chapter 13 Confirmation Process. ... Complete the Confirmed Chapter 13 Plan.