Discharge of Debt

Tampa Bay Bankruptcy and Debt Relief Attorney

When Are Debts Discharged?

The Chapter 13 debtor is entitled to a discharge of debt upon successful completion of all payments under the Chapter 13 plan. In return for the willingness of the Chapter 13 debtor to undergo the discipline of a repayment plan for three to five years, a broader discharge is available under Chapter 13 bankruptcy than in a Chapter 7 case. A typical Chapter 7 bankruptcy case is opened and closed within three to six months, and the person filing emerges debt-free except for a mortgage, car payments, and certain types of debts that survive bankruptcy, such as student loans, recent taxes, and back child support.

Discharge of Debt


What Does Discharge Mean?

Once you receive your bankruptcy discharge, you no longer legally owe your creditors for any discharged debts. You can start your financial life all over again without court supervision, but you must inform the bankruptcy court when you receive or become eligible to receive an inheritance, insurance proceeds, or proceeds from a divorce settlement within 180 days of the date you originally filed your papers. You may be able to establish credit shortly after you are discharged and get a credit card or even a car loan. However, the interest rate will likely be higher until you again establish credit worthiness. A Clearwater bankruptcy lawyer can assist you get a discharge.

Life After Bankruptcy

Life after bankruptcy is like a wound which would require some time to get healed up, so one should have the patience to bear the outcome and work accordingly taking into consideration all the ups and downs. In a way it polishes human nature and makes them wise and takes them out from all sort of unhealthy practices. You can redeem your credit by choosing the right bankruptcy chapter to file. Chapter 7 bankruptcy is sometimes called "fresh start bankruptcy" and involves the liquidation of assets to pay creditors. In Chapter 13 bankruptcy, the debtor must make payments according to a payment plan approved by the bankruptcy court. Chapter 13 has certain advantages over Chapter 7, including protection against foreclosure and the ability to relieve a wider range of debts.

To learn more about discharging debt in bankruptcy, check out this quick video from the U.S. Courts.

There are many lawyers in Florida but not all of them can help you through the bankruptcy process. We are a compassionate and affordable bankruptcy lawyer. We pride ourselves on providing sound bankruptcy advice that helps you understand your options. Contact the Coleman Law Group to learn the steps to filing bankruptcy. Contact us at 727.214.0400 for a Free bankruptcy consultation.

You also can visit our website at colemanlawgroup.com