A chapter 13 usually discharges when plan payments are complete, typically at the end of the 3-5 year plan. Jackson, MS bankruptcy lawyer T.C. Rollins has filed thousands of chapter 13 cases to help people fix their debt problems and can answer any questions you have regarding a Chapter 13 bankruptcy discharge.
Chapter 13 bankruptcy is a type of bankruptcy that allows people to reorganize their debt. All of the debt is grouped into a bankruptcy plan payment. The plan payment is usually 5 years, but some people qualify for a 3-year plan. Chapter 13 discharge is not usually granted until the end of the plan.
Instead of paying your debt yourself in chapter 13, you will be paying a bankruptcy plan payment each month to a bankruptcy trustee. If you make all of your payments, then you will get a discharge at the end of the case. If you cannot make all of the payments, then your case will be dismissed. Dismissal is a bad result because you will still owe your debt. A Discharge results in the elimination of many debts.
A chapter 13 case is started by filing a bankruptcy petition. Once the case is opened, the debtor must file a plan of how the debts will be reorganized. It usually takes about 3 months for the court to review and approve the plan. From then on, the most important part is for the debtor to make the bankruptcy payments on time.
There are circumstances when a case can be discharged early. A hardship discharge can be requested if the debtor has experienced an extreme financial hardship that was out of their control and is relatively permanent. Hardship discharges can be difficult to qualify for. I hearing will most likely be needed. The case can also discharge if you pay your debt in full in the case. Once all the debt is paid in full there is not a reason to keep the case open and a discharge can be granted early. This usually happens when a debtor comes into an unexpected windfall while in the case.
Are you considering a bankruptcy filing in Mississippi? If yes, you will need an experienced Jackson bankruptcy attorney to help you get a fresh start. Our Jackson Chapter 7 bankruptcy lawyer from the Rollins Law Firm is committed to providing you with quality bankruptcy service. From the moment you walk into our Ridgeland MS office, you can rest assured that your needs will be met. Our lawyers will guide you throughout the bankruptcy process. Contact our Mississippi bankruptcy attorneys today for more details.