Are there alternatives to filing bankruptcy? Does a Chapter 13 bankruptcy discharge eliminate all debts?

Are there alternatives to filing bankruptcy? If the debtor's financial problems are only temporary, he or she can simply ask creditors to accept lower payments or grant an extended payment schedule. Creditors may be receptive to these ideas if the debtor has been a prompt payer in the past or if they wish to avoid the inconvenience of a bankruptcy proceeding. Consumer credit counselors can also help creditors work out a repayment plan. Some of these advisors work for non-profit agencies, so they charge no fees, but others charge a fee or may even be unscrupulous and should therefore be avoided. Back to Top

Does a Chapter 13 bankruptcy discharge eliminate all debts? A Chapter 13 bankruptcy discharges only those debts scheduled in the bankruptcy, according to the terms of the plan. A debt which is not scheduled cannot be discharged. In addition, a Chapter 13 discharge does not affect court-ordered domestic support obligations; most educational loans; debts for personal injuries caused by drunk driving; civil restitution or damages for willful or malicious acts causing personal injury and debt; criminal fines; restitution obligations; certain other long-term obligations that extend beyond the term of the plan, such as home mortgages; withholding taxes; unfiled or late-filed tax returns; and fraudulent or willful evasion of taxes. Back to Top