There are some debts that survive Chapter 13 bankruptcy. In filing Chapter 13 bankruptcy, most debtors will pay unsecured and nonpriority creditors according to their plan, and the remainder of the debts will be discharged after the bankruptcy. Remember the remaining nonpriority and unsecured debts that will not be discharged even if your repayment plan is complete. With the help of an experienced bankruptcy attorney, you will learn the debts that must paid in Chapter 13 bankruptcy are.
Since 1999, Tom McAvity, the founder of Northwest Debt Relief Law Firm, has been practicing law in Oregon. With such extensive experience, our legal team has always been committed to helping clients overcome their financial problems. We provide comprehensive legal assistance to help you get out of debt. If you want to pay off your debts so you can sleep soundly at night, set up a free debt solution consultation today!
Why do I need a Bankruptcy Attorney in Oregon?
Selecting the best bankruptcy attorney before filing is the most crucial step. To get the best possible outcome, you must take your time to evaluate the background of the bankruptcy law firm. In doing so, take note of the following qualities:
- Always available – Financial difficulties are as important as physical health. In the latter case, you don’t want an unresponsive doctor. Your financial problems require a responsive bankruptcy attorney in bankruptcy. Choose someone who is always reachable by phone or email.
- Customized Attorney fees – Every debtor deserves a bankruptcy lawyer who charges reasonably. Since offering legal assistance has to be personalized, legal fees also have to be customized depending on the complexity of your case. Look for someone whose price is reasonable and affordable.
- Fast Resolution – If you are thinking about filing for bankruptcy, it means you have unmanageable debts, so quick action and resolution are necessary. Because your finances are at stake, you must hire an experienced attorney who can resolve your case quickly.
If you are looking for a bankruptcy firm that is always reachable, customizes attorney fees, and offers fast resolution, the Northwest Debt Relief Law Firm is the one you are looking for. Our experienced bankruptcy lawyers are at all times reachable through phone calls and emails to answer your questions. We offer fast and complete court representation while customizing our legal fees. Depending on your case, Northwest Debt Relief Law Firm can personalize your fees. Break free from debt today!
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy plays an important role in bankruptcy laws. It allows you to have a payment plan to repay all or some part of your debts while protecting you and your co-signer against creditor harassment and claims. The plan clearly defines your debts and advises how to pay them. If you have financial problems that cannot be solved by credit counseling or liquidation under Chapter 7, Chapter 13 bankruptcy may be the right one for you. In Chapter 13 bankruptcy, certain debts will survive regardless of your income or situation.
What Debts Don’t Receive a Chapter 13 Discharge?
Domestic Support Obligations
Domestic support, alimony, and child support are nondischargeable debts in both Chapter 13 and Chapter 7 bankruptcy. In Chapter 13 bankruptcy, your repayment plan must state your intention to pay these debts and obligations in full. Even if you are not required to repay all of your child support obligations during your repayment plan, any debt that remains unpaid after you have completed it is considered non-dischargeable.
Criminal Penalties
Restitution, fines, and the like you owe because of a criminal sentence or conviction are non-dischargeable in Chapter 13 bankruptcy.
Penalties or Fines Owed to a Federal Agency
If a fine was imposed on you by a government agency for some reason, or your property has been subjected to forfeiture or penalty, this cannot be discharged in Chapter 13. However, if a government agency imposes a fine due to overpayment of a government benefit because you fail to disclose income or other faulty behavior, only the fine is not dischargeable.
The fund you were overpaid for can be discharged just like your unsecured debts. However, it is worth keeping in mind that if the agency files an action before the court accusing you of getting the overpayment through fraud, the court can decide that the overpayment cannot be discharged.
Certain Taxes
If you have recently incurred income tax debts or priority debts, these cannot be discharged in a Chapter 13 repayment plan. If your plan ends prematurely for certain reasons, the tax debt you have will remain. You can either convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy or simply pay them outside of bankruptcy.
Intoxicated Driving Debts
If you were driving a vehicle while intoxicated by drugs or alcohol before causing injury or killing someone, any debts are not dischargeable. If the intoxication in your liability for injuring or killing someone cannot be proven, the judgment will not be discharged unless the bankruptcy court determines that you were intoxicated.
Malicious or Willful Actions Debts
If you cause death or injury to someone due to a malicious or willful act, the judgment cannot be discharged in Chapter 13 bankruptcy. In cases like these, the creditor is under no obligation to prove before the court why the debts should not be discharged. Rather, the debts are automatically deemed by the bankruptcy court as non-dischargeable.
It is worth noting that the conduct that gives rise to the debt must be malicious or willful for it to be nondischargeable under this Chapter. For example, a judgment for injury caused by your negligent driving would certainly survive in Chapter 13 bankruptcy for maliciousness. The sole exception to this rule is for debts incurred due to death or personal injury.
Creditors or Debts Your Refuse To List
In every bankruptcy case, you must include all of your creditors in papers and relevant bankruptcy documents and provide their current addresses. This is for the court to send the notice to them through the mail. In cases where you fail or forget to list a creditor on your bankruptcy papers or inadvertently put a different address or identity, the court cannot notify the creditor, and the debt will survive in Chapter 13.
Student Loan Debt
In contrast with Chapter 7, Chapter 13 cannot discharge student loans unless you prove before bankruptcy that paying for them would cause undue hardship. In some situations, you may discharge the interest on student loans.
Call our Portland Bankruptcy Attorney Now!
Determining what debts survive in Chapter 13 bankruptcy is important, but it is not simple to understand everything by only using the internet as your source. Instead, you must have someone who is an expert in bankruptcy laws. If you are still unsure whether to file for Chapter 13 bankruptcy or not, calling an experienced bankruptcy attorney now can help.
Northwest Debt Relief Law Firm assists you in making sound choices and decisions. We believe that everyone deserves a new start in life. Our legal team will go to any length to get you back on track. We offer prudent assistance and can always guarantee that you will be guided throughout the entire process. Besides Chapter 13, we also handle cases in Chapter 7 and after bankruptcy. We are always reachable, provide a quick resolution, and personalize our fees to your needs. Schedule a free debt solution consultation now!
