Chapter 13 Bankruptcy: What Happens at the End?

Chapter 13 bankruptcy is one option that you have in order to take control of your debts and get back on your feet. When you get to the end of the chapter 13 bankruptcy process, here is what you should expect.

Finish Your Payments

With chapter 13 bankruptcy, you are going to be dealing with a payment plan. The court is going to create a payment plan for you that you will have to stick to in order to repay your creditors. You have to stick with this plan for a certain amount of time until many of your creditors are paid off.

After the Payment Plan

After the creditors in your payment plan have been paid off, your repayment plan will end. At that point, any debts that you still have that are eligible for discharge will be wiped out. In order for this debt discharge to take place, the court is going to review the success of your payment plan and make sure that you have stayed up to date on any alimony or child support payments that you have. As long as you have remained faithful to your repayment plan and your other obligations, they will wipe out the rest of your debt.