What to Expect After Chapter 13 Discharge
Chapters 13 has been introduced as a type of bankruptcy filing for individuals with a fair income, keeping in mind their intent to pay their debts but are unable to do so in a timely manner. The underlying principle of Chapter 13 is to facilitate financially distressed individual debtors to propose and carry out a settlement plan under which creditors are paid over an extended period of time. Upon filing for Chapter 13 discharge a person can expect the following advantages and disadvantages. On filing for a Chapter 13 discharge, barring a few prominent exceptions, all other ongoing legal actions against the debtor are stopped. A creditor is prohibited from carrying out new legal actions against the debtor. It also stops creditors from corresponding with the debtor, or any person except the debtor’s lawyer, to discuss or ask for collection of a debt.
