Debts You Will Still Owe After Chapter 13 Bankruptcy

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Debts You Will Still Owe After Chapter 13 Bankruptcy

Even if you successfully complete your Chapter 13 plan, it’s possible that you’ll still owe money to your creditors when your case is over. Debts that are non dischargeable cannot be discharged in any kind of bankruptcy case, whether Chapter 7 or Chapter 13. IF the debt was one on which the creditor was entitled to collect interest (such as a student load or tax debt), you’ll owe more than the unpaid balance. The creditor can and will probably tack on interest that accrued during your Chapter 13.
The debts that my escape discharge in a Chapter 7 case if a creditor successfully objects are treated the same as regular unsecured debts in a Chapter 13 bankruptcy (such as credit cards and medical bills). As long as you satisfy the requirements of your Chapter 13 plan, the balance on these debts is wiped out at the end of your case, under what is referred to as Chapter 13 bankruptcy’s “super discharge”.

Bankruptcy and Joint Debtors
Debts for which you have a joint debtor, another debtor with you on the same debt, raise some tricky issues. Let’s look at the different kinds of joint debtors and what your bankruptcy filing might mean.

Consigners and Guarantors
Someone may have signed onto your debt, in order to back up or guarantee your payment. If the underlying debt for which you have a consigner or guarantor is dischargeable, your joint debtor will get stuck owing the fill if you file for Chapter 7 bankruptcy and wipe out your own liability for the debt.
If you want to file for Chapter 7 bankruptcy but don’t want to stick it to a cosigner or guarantor, you can agree with the creditor as a part of your bankruptcy case to reaffirm the debt, that is, to be fully liable for it when your bankruptcy ends.

Spouse
Most married couples file for Chapter 7 bankruptcy together, because their debts are joints. However, if you are in a relatively new marriage, have not accumulated any joint (marital)property, and want to get rid of separate (premarital) debts, you probably safe filing alone, In addition, you may want to file alone if any of the following are true:
a) Your spouse owns separate, valuable property, such as a second home. Your spouse would probably lose it to the bankruptcy court.
b) You and your spouse own a house in tenancy by the entirely. This form of property ownership can apply to property owned by married couples in some non community property states.
c) You and your spouse have separated. In such a situation, filling alone makes sense unless you haven’t yet allocated debts and divided property.
d) You live in a community property state. In community property states, virtually all debts incurred during marriage are considered community, or jointly owed. Under bankruptcy law, if only one spouse files for Chapter 7 bankruptcy in a community property state, the community property is considered property of the estate and the order spouse’s share of the community debts is also discharged.

In a Chapter 13 bankruptcy, it rarely makes sense for only one spouse to file. The filing spouse must list the income, expenses, and property of both spouses, and the bankruptcy case will have an impact on both spouses.
IF you are married, you should file for Chapter 13 bankruptcy alone only if all the following are true:
a) You are separated form your spouse
b) You’ve divided your property
c) You’ve agreed to pay the jointly incurred martial debts
d) You’ve otherwise ended your financial entanglements (other than paying or receiving alimony or child support)

Bankruptcy Is it the right solution to your debt problems? Attorney Robin Leonard

Debts You Will Still Owe After Chapter 13 Bankruptcy

Avoid Bankruptcy and Free Your Debt . Get Debt Consolidation or Debt Settlement Advices.