Chapter 13 Common Questions For Waukegan Bankruptcy Attorney

How long will a Chapter 13 plan last?  Chapter 13 plans lasts anywhere from three to five years.  There are instances where a Chapter 13 plan can last less than three years, but the typical Chapter 13 plan lasts no less than three years and certainly no greater than five years. 

I’m a co-signer for a debt.  How does bankruptcy affect my obligation?  Bankruptcy wipes out your obligation for that debt.  That would make your co-obligor liable for the entire of the amount of the debt, unless that person has also declared bankruptcy.  But your obligation for the debt is wiped out.  That does not, however, strip any liens that are in place against the collateral for which the debt is owed. 

Are all of my debts discharged after I complete all of my plan payments, or just some of them?  Well, it depends on the nature of the debt.  If we’re talking about credit card debt, medical debt, even housing debt or car debts, those debts are discharged upon completion of a Chapter 13 plan.  Other debts, such as child support and student loans and certain taxes are not dischargeable.  There are kinds of taxes that can be dischargeable.  That’s a separate topic.  But it depends on the nature of the debt and whether or not the debt is going to be discharged through the Chapter 13 bankruptcy.