When Does Chapter 13 Bankruptcy Get Discharged?

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 16, 2022

Debts under chapter 13 bankruptcy typically get discharged around 66 months after the day of filing. Debts are only discharged after the debtor has created their repayment plan, paid what they owe, and completed mandatory debt counseling.

The entire process often takes 3-5 years. Chapter 13 bankruptcy allows debtors to create a repayment plan to pay off their debts in a timely manner.

Some debts, such as credit card debt, medical debt, and unsecured personal loans, may be dischargeable. Debts that are discharged are not obligated to be paid.

FAQs

What does bankruptcy mean?

Bankruptcy is a legal proceeding in which a debtor declares their inability to pay back their creditors.

What are the different types of bankruptcy?

There are three common types of bankruptcy known as “chapters” in the U.S. bankruptcy code, Ch. 7, Ch. 11, and Ch. 13, each with varying criteria and consequences.

What is Chapter 7 bankruptcy?

Chapter 7 is known as a liquidation bankruptcy. Most of your property will be sold to pay off your debts, then whatever debt in excess of the value of your liquidated property will be cleared.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is a reorganization bankruptcy. With Chapter 13, you are able to keep your personal property and reorganize your debts to a payment schedule that enables you to pay back your creditors over time (often 3 to 5 years).

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

Find Advisor Near You