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What happens after a Chapter 13 bankruptcy discharge?

Seeking financial freedom through bankruptcy is a big step that many Tennessee residents decide to take to improve their economic standing. Most individuals elect to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, two different processes that are available to individuals through different qualifying requirements. In the end, however, individuals who file for either form of bankruptcy hope to arrive at the process's terminal event: debt discharge.

If a debtor reaches discharge through bankruptcy, it means that their qualifying debts have been eliminated. Our readers should note that not all of a person's debts may be eliminated through discharge. In Chapter 13 bankruptcy, a number of different types of debts and loans may survive and may continue to be the responsibility of the party who received discharge.

For example, the debts a person has to their children through unpaid child support will survive a Chapter 13 discharge. Additionally, alimony payments that have gone into arrears will still be owed to the receiving party after discharge. Other legal financial obligations, such as criminal fines, survive a person's bankruptcy discharge.

After a person has finished the bankruptcy process they may still need to address outstanding financial obligations that were not resolved through their Chapter 13 discharge. Managing post-bankruptcy debt is not always easy, but it is important that individuals have a plan for managing these issues when their bankruptcies end. Working with a debt relief attorney may allow individuals to prepare for their post-bankruptcy debts by having plans in place to begin paying down their obligations and preserving the financial stability they achieved by seeking protections through bankruptcy.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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