Chapter 13 discharge

When do you get a Chapter 13 discharge, and what does it cover?

It comes at the end of the plan, which usually lasts three to five years; the federal courts say it typically arrives about four years after filing. The debtor must also certify, if it applies, that domestic support obligations have been paid, must not be barred by a recent earlier discharge, and must complete an approved financial management course. 1 2

Some debts survive. They include certain long term obligations such as a home mortgage, alimony and child support, certain taxes, most government funded or guaranteed education loans, debts for death or injury caused by driving while intoxicated, and criminal restitution and fines. 1

The Chapter 13 discharge is somewhat broader than the Chapter 7 discharge. Debts that can be discharged in Chapter 13 but not in Chapter 7 include debts for willful and malicious injury to property, debts incurred to pay nondischargeable taxes, and debts from property settlements in divorce or separation. 1

The discharge is Official Form 3180W, the document people often call a discharge letter. The clerk mails a copy to all creditors, the U.S. trustee and the case trustee, and the debtor receives one too. 3 2

From then on it acts as a court order that bars creditors from trying to collect discharged debts from the debtor personally. The bankruptcy itself can stay on a credit report for up to 10 years. 4 5