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Can I discharge debt in Chapter 13 bankruptcy? (Cary)

Can I Discharge Debt in Chapter 13 Bankruptcy?

Chapter 13 allows the debtor to propose a plan to repay their debt through a structured, court-approved plan.  In some cases, the debtor will be required to repay all of the debt.  In other cases, the debtor is only required to repay part of the debt.

Discharge of Debt in Chapter 13

In many cases, the debtor's Chapter 13 payment is determined by their ability to pay their unsecured debt.  As such, in certain cases, if the debtor's budget only allows for repayment of part of the debt, the remaining debt can sometimes be discharged if the debtor successfully completes the Chapter 13 plan by making all required payments.

Many factors affect whether a debtor will be permitted to discharge unsecured debt in a Chapter 13 case.  These factors include:

  • the value of any non-exempt assets
  • household income in relation to reasonable and necessary household living expenses
  • additional income that may come available during the plan period, such as tax refunds and bonuses
  • inheritance proceeds

If you would like to know whether you may be able to discharge unsecured debt on a Chapter 13 bankruptcy, contact us online  or call us today for a free consultation at 815-788-9511.

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Law Office of Timothy Brown is committed assisting individuals in need of Debt Relief, Bankruptcy Litigation, Chapter 7, Chapter 13, Creditor Harassment Defense, Debt Collection Defense, and Foreclosure law issues in Illinois.

We will discuss your case with you at your convenience. Contact us today to schedule an appointment.