The “Super Discharge” under Chapter 13
One of the fundamental principles related to the discharge of debts in a Chapter 7 proceeding is the prohibition of discharge of child support and alimony arrearages. But what about other divorce or family law-related debts to your ex-spouse, ones that have no connection to support obligations?
Under Chapter 7, you may not discharge a debt to a former spouse that’s based on the division of marital property. You may, however, be able to rid yourself of that debt in what’s known as a “super discharge in Chapter 13.”
Understanding the Super Discharge in Chapter 13
When you file for protection under Chapter 13 (known as a “debtor’s reorganization”), non-support debt to an ex-spouse will customarily be categorized as unsecured, much like credit card and medical debt. All unsecured obligations will generally be pooled together. Your reorganization plan will ensure that secured and priority debt are paid first. The amount that will be available to pay unsecured, non-priority debt will be calculated based on a number of factors, including:
- The amount of debt that must be fully repaid pursuant to bankruptcy law
- The total amount of non-priority, unsecured obligations
- How much you’ll pay in administrative expenses
- How much you can afford to pay, based on your resources
- How long your plan will be in effect
In most instances, when everything is factored in, a debtor will end up paying a relatively small amount to each creditor for the length of the bankruptcy. Any amounts still unpaid at the termination of the bankruptcy will usually be discharged.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
At the Law Office of Carrie L. Weir, I provide a free initial consultation to anyone with questions or concerns regarding a personal bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083to schedule a private consultation. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.
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