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Some debts may not be discharged in Chapter 13 bankruptcy

Personal bankruptcy is often viewed as a legal means of clearing one's debts and finding a clean slate on which to build a new financial future. Individuals who opt to use Chapter 13 bankruptcy as their path out of debt can expect to spend years working through the repayment plans that they created during their bankruptcy proceedings. Once a Tennessee resident receives their bankruptcy discharge, they may be surprised to find that they are not completely debt free.

That is because not all debts are dischargeable in bankruptcy. While this post will discuss some of the debts that may survive the Chapter 13 bankruptcy process, readers are reminded that the best source of information about their individual legal needs is their personal bankruptcy attorney. This post does not offer its readers any legal advice.

A financial obligation that is ordered by a court will generally not be dischargeable in bankruptcy. These can include but are not limited to orders to pay child support or alimony, or debts that are incurred as a part of financial judgments. A person who acquires these types of debts may be liable for them once their Chapter 13 discharge is complete.

Additionally, another common form of loan that is generally not dischargeable in bankruptcy is a student loan. While private loans may be incorporated into the repayment plan of a Chapter 13 debtor, government loans may require repayment in full. Exceptions can exist, though, in individual bankruptcy proceedings.

It is important that before filing for Chapter 13 bankruptcy or another form of debt that individuals fully understand what will be required of them and how their debts may be impacted by the processes.

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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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