Chapter 13 bankruptcy allows you to reorganize your debt and pay your creditors over time. In Chapter 13 bankruptcy, a bankruptcy petition and a proposed repayment plan are filed outlining how creditors are repaid over a three to five years. The bankruptcy court appoints a trustee to review the petition and repayment plan. Twenty to forty days after the bankruptcy is filed, a 341 Meeting is held and the trustee asks questions about your assets, income, the proposed repayment plan and debts. The proposed plan must cover the repayment of your debts. You will make monthly payments for three to five years to pay your debts. If you make all monthly payments required under the plan and make all payments on your secured debts (i.e., mortgage, car payments), the bankruptcy court will issue an order discharging your debts.

THE CHAPTER 13 DISCHARGE

Certain debts can't be discharged in bankruptcy. In a Chapter 13 case, the most common types of debts that are not discharged:

• Child support and alimony (domestic support obligations)
• Student loans
• Fines and restitution for municipal, state and federal governments
• Recent tax debt taxes
• Judgments in wrongful death or personal injury cases arising from your intoxication
• Debts not listed in your bankruptcy petition
• Debts not included in your Chapter 13 plan
• Interest owed on nondischargeable debts

Common types of debts that are dischargeable in Chapter 13 are:

• Credit cards
• Personal loans
• Medical bills
• Electric, gas and telephone bills
• Civil court judgments (unless based on fraud or personal injury judgments)
• Past due rent(s)
• Collection agency accounts
• Repossession and mortgage deficiency judgments

At Thomas Law Group, P.C., we are Chicago bankruptcy lawyers who specialize in consumer Chapter 13 bankruptcy cases. As Chicago Chapter 13 lawyers, we help stop foreclosures and car repossessions. As Chicago bankruptcy lawyers, Thomas Law Group, P.C. is here to answer your questions about Chapter 13 bankruptcy. Call 866-848-9183 or contact us online to schedule a free bankruptcy consultation.