QUESTION
If I file chapter 13 to include unsecured debt and auto loan, do I still owe monies on the unsecured debt and auto loan after repayment is completed?
Asked on Sep 28th, 2016 on Bankruptcy - Washington
11 ANSWERS
1 Award
No. The judge is going to approve a chapter 13 plan based on your income and assets. Once you have completed the chapter 13 as it was approved, any unpaid debts are eliminated at that time and you will owe nothing more on those debts.
Answered on Oct 26th, 2016 at 7:28 PM
Bankruptcy Attorney serving Waterford, MI
at
Keith M. Nathanson PLLC
Update Your Profile
A chapter 13 has a repayment plan which is filed. Generally if the plan is adhered to, and the terms and conditions of a chapter 13 are complied with, a debtor will receive a discharge at the end of the Chapter 13 which will discharge any remaining liability to certain classes of creditors. It requires a better analysis and understanding of your debts to provide a conclusive answer.
Answered on Oct 20th, 2016 at 6:43 PM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
No. If you complete all payments under your plan, even they pay only a small fraction of the unsecured creditors' claims, the debts you list will be discharged.
Answered on Oct 20th, 2016 at 6:42 PM
If you are entitled to a Chapter 13 discharge and successfully complete your Chapter 13 Plan, you will eliminate your remaining unpaid debt through the discharge. But not everyone filing Chapter 13 is entitled to a discharge and you should have known this before you jumped off the cliff and filed Chapter 13.
Answered on Oct 20th, 2016 at 6:42 PM
If you complete your chapter 13 plan, your remaining unsecured debt will be discharged. However, debt secured by property, such as a car loan, must be paid in full unless you are able to "cram down" the auto loan to the fair market value of the vehicle. Chapter 13 is a complicated process and an experienced bankruptcy attorney could help you save money in areas such as the car loan. You can finance the attorney fees through the plan and it would be money well spent.
Answered on Oct 20th, 2016 at 6:42 PM
2 Awards
So long as you pay all your disposable income for the term of the plan the unsecured debt is discharged. If you are surrendering the automobile then any deficiency is unsecured and will be discharged at the end of the plan. If you are keeping the car, then you must pay the loan in full, with some exceptions.
Answered on Oct 20th, 2016 at 6:41 PM
You will discharge the unsecured debt but must surrender the auto if you don't want to continue payments.
Answered on Oct 20th, 2016 at 6:41 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
The unsecured debt will be discharged and the auto loan will be paid in full during your Chapter 13.
Answered on Oct 20th, 2016 at 6:41 PM
William Rhymer
No, not normally, as long as your plan provides for some type of treatment for each debt. Wish you luck.
Answered on Oct 20th, 2016 at 6:41 PM
Bankruptcy Attorney serving Seattle, WA
at
The Law Office of Marc S. Stern
Update Your Profile
The question is not clear. Generally the secured portion of the loan is paid during the 13. The unsecured portion is discharged as part of the chapter 13 process. If done right, at the end you should have the car free and clear and no debt. There are exceptions and you should ask your attorney.
Answered on Oct 20th, 2016 at 6:40 PM