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What is a chapter 13 discharge?
It is a court order releasing a debtor from all dischargeable debts and ordering creditors not to collect them from the debtor. A debt that is discharged is one that the debtor is released from and does not have to pay. There are two types of chapter 13 discharges: (1) a full or successful plan discharge, which is granted to a debtor "who completes all payments called for in the plan, and (2) a partial or unsuccessful plan discharge, which is granted to a debtor who is unable to complete the payments called for in the plan due to circumstances for which the debtor should not be held accountable. A full chapter 13 discharge is broader and discharges more debts than a chapter 7 discharge, while a partial chapter 13 discharge is similar to a chapter 7 discharge.
What types of debts are dischargeable under chapter 13?
A full chapter 13 discharge granted upon the completion of all payments required in the plan discharges a debtor from all debts except
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debts that were paid outside of the plan and not covered in the plan,
debts for alimony, maintenance, or support,
debts for death or personal injury caused by the debtor's operation of a motor vehide while unlawfully intoxicated,
debts for restitution or criminal fines included in a criminal sentence imposed on the debtor,
debts for student loans or educational obligations unless a court rules that not discharging the debt would impose an undue hardship on the debtor and his or her dependents,
installment debts whose last payment is due after the completion of the plan, and
debts incurred while the plan was in effect that were not paid under the plan.
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A partial chapter 13 discharge granted when a debtor is unable to complete the payments under a plan due to circumstances for which the debtor should not be held accountable, discharges the debtor from all debts except
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secured debts (i.e., debts secured by mortgages or liens),
debts that were paid outside of the plan and not covered in the plan,
installment debts whose last payment is due after the completion of the plan,
debts incurred while the plan was in effect that were not paid under the plan, and
debts that are not dischargeable under chapter 7 (these debts are listed on page 5 of this handbook).
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