What does a Chapter 13 discharge mean? A “discharge” is the fancy legal term for your debts being forgiven in your bankruptcy. When we talk about debts forgiven in bankruptcy, we would say that your debts are discharged. The Chapter 13 “discharge order” is the final order you receive in your Chapter 13 bankruptcy.

How long does Chapter 13 take to discharge?

Since a chapter 12 or chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.

What kind of discharge is a Chapter 13?

When you complete your Chapter 13 repayment plan, you’ll receive a discharge order that will wipe out the remaining balance of qualifying debt. In fact, a Chapter 13 bankruptcy discharge is even broader than a Chapter 7 discharge because it wipes out certain debts that aren’t nondischargeable in Chapter 7 bankruptcy.

When do you get a second chapter 13 discharge?

Two years must elapse between filing dates before you’ll be entitled to receive a second Chapter 13 discharge. Here are the waiting periods when a second bankruptcy case is a different chapter than the one you received your first discharge in.

Can a loan be approved after a chapter 13 discharge?

However, your loan will be referred for manual review by an underwriter unless it’s been two years since the discharge date. To get an automated, computerized approval, it has to be two years since the Chapter 13 discharge. This is an important point because many lenders will not manually approve a loan.

How are long term debts discharged in Chapter 13 bankruptcy?

If collateral secures the obligation, you must pay as agreed or surrender the collateral (usually a house or car). Long-term debts, like a 30-year mortgage, don’t need to be paid in full through the Chapter 13 plan. However, if you’re behind on payments, you’ll need to make them up in the plan.

What happens after I Complete my Last Chapter 13 plan?

Once the Clerk of the Court receives the form, they will file the Certificate and within 30 days you will receive your discharge, which is the conclusion of your Chapter 13 bankruptcy case.