ABA Family Legal Guide

Consumer Bankruptcy

Chapter 13: Wager-Earner or Individuals with Regular Income Bankruptcy

Payment Plans

I think a Chapter 13 discharge might be right for me. What debts will I be able to discharge?

A Chapter 13 discharge granted upon completion of a plan covers more types of debt than the Chapter 7 discharge. It is important to note that the difference is much smaller than it was before the 2005 bankruptcy law was passed. Debts not discharged by Chapter 13 include:

• Taxes, where returns either were not filed or were fraudulent
• Debts left off the bankruptcy schedules
• Support obligations
• Student loans
• Debts for personal injuries caused by drunk driving
• Criminal fines
• Some restitution orders
• Debts for money obtained under false pretenses
• Debts for luxury goods bought on credit within 90 days of filing
• Cash advances over $750 obtained within 70 days of filing
• Funds obtained by embezzlement