Chapter 13 bankruptcy requires you to pay off a portion of your debts over a three- to five-year period before discharging the remainder. Unlike Chapter 7 bankruptcy, which discharges more debt more quickly, this option better protects your assets. If you are preparing for a Chapter 13 discharge, you’re probably wondering what to expect. Find out below.

Attending a Discharge Hearing

You will be asked to attend a hearing where the bankruptcy courts will review your case and check that you’ve met the requirements for discharge. If no creditors object, the judge will discharge your case.

You will then receive formal paperwork confirming that your Chapter 13 case has been legally discharged. Keep this on file as you may need to show it to creditors who still try to collect on forgiven debts — which they are legally not allowed to do!

Regaining Financial Control

Following your Chapter 13 bankruptcy, your tax refunds may have been seized to pay down debts. After the discharge, you regain control of your finances and will receive tax refunds again directly. You also no longer have to request court permission when applying for credit cards.

Chapter 13 bankruptcy won’t clear all your debts — back taxes or child support won’t be discharged, for instance. Continue to make payments on such excluded debts. Your credit score will take a hit after filing for bankruptcy, and this is important to rebuilding it.

You can also boost your credit by getting a secured credit card. This requires you to make a cash deposit against the amount of credit requested. Another option is to take out a loan you’re sure you can pay off and have a close friend or family member cosign it for you.

Anderson Law Firm of High Point, NC, has built a reputation for providing top-quality legal guidance to clients filing for Chapter 7 or Chapter 13 bankruptcy. These professionals know that financial difficulties are stressful and will ease the burden for you. Trust them for honest insights every step of the way. Learn more about their work on their website. Book your meeting with an attorney by calling (336) 431-7336.

The information contained in this site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. We are a Debt Relief Agency. We help people file for Bankruptcy Relief under the Bankruptcy Code.