Chapter 13 Bankruptcy Super Discharge
Bankruptcy is designed to allow an insolvent debtor to become solvent by relieving the burden of debt. Although chapter 7 is the only available form of consumer bankruptcy that allows a complete discharge or elimination of all debt, there are alternative solutions found in chapter 13 bankruptcy. A chapter 13 super discharge means that the bankruptcy is a hybrid. Having elements of both chapter 13 and 7. Seek the legal advice of a Chattanooga bankruptcy attorney regarding the different debt relief options.
Chapter 7 Bankruptcy is not for Everyone
In order to file chapter 7 bankruptcy, a person must meet certain qualifications. This includes passing a financial means test. Also, this form of consumer bankruptcy can only be filed once in eight (8) years. A chapter 13 super discharge may be filed more than four (4) years after chapter 7. Or a more than 4 years after a previous super discharge bankruptcy case. So if a debtor can not file chapter 7. Or, has significant equity in assets like a house that he/she desires to retain. Then a suprer discharge in chapter 13 bankruptcy may be the best, if not the only solution.
Benefits of a Chapter 13 Super Discharge
Chapter 13 bankruptcy involves repayment of the debts owed. But, payment of all debt may not be required. Depending of course on the financial means of an individual debtor. A chapter 13 plan can provide for the repayment of only a percentage of the total of the unsecured debts owed. For example a 70% plan leaves 30% unpaid at the end of the plan period. Upon the successful completion of the chapter 13 plan. This remainder would be erased under a super discharge. A bankruptcy lawyer can help the debtor take the right steps to complete the super discharge plan.[pullquote align=”left|center|right” textalign=”left|center|right” width=”30%”]Discharge of debt[/pullquote] means that the obligation and requirement to pay is eliminated forever. The consumer credit report will still reflect that the debt was owed with a notation of discharged in bankruptcy. The creditor will be forbidden by law to take any action to collect the former debt.
Surrender and Super Discharge Secured Debt
Like unsecured debts secured obligations are also eligible for a super discharge. A person may surrender a house, a car or other secured asset and discharge any amount owed after the lender sells the item- discharge of deficiency. There are exceptions and of course the creditor can object to confirmation of the super discharge chapter 13 plan. Discuss this issue and the specific details of super discharge in chapter 13 with a qualified Chattanooga bankruptcy attorney.