Filing a Chapter 13 in Texas

Discharge

Once you have made every required payment under your confirmed (bankruptcy court approved) Chapter 13 plan, then, you will receive your discharge order.  A discharge order is an order of the bankruptcy court that officially wipes out your dischargeable debts and prevents those creditors, whose debts have been discharged, from pursuing you.

When you get the discharge order:

  1. Keep it with your other legal documents such as your will or car titles. If a creditor tries to collect on a discharged debt, forward a copy of the discharge order to the creditor and that should stop the collection action.
  2. Once you file a Chapter 13 case and receive a discharge, you will not be eligible for another Chapter 13 discharge unless four years have passed from the date of the filing of the first Chapter 13 case.

There are several types of debts which will not be discharged or relieved through a Chapter 13 bankruptcy. These include but are not limited to:

  • debts for federal income taxes that counting backwards from the date of the filing of the bankruptcy (a) the returns for which have been due for less than three years, (b) have been assessed within 240 days, or (c) the returns for which have been on file less than two years or have not been filed at all.
  • debts associated with filing a fraudulent income tax return.
  • debts for “trust fund” taxes, such as employment withholding tax, sales tax, etc.
  • debts for domestic support obligations such as child support, spousal support and alimony.
  • student loans and their consolidation.
  • debts that came about for operating a motor vehicle, boat or airplane while under influence.

There are several types of debts which may end up not getting discharged or relieved through a Chapter 13 bankruptcy. These include but are not limited to:

  • debts for fraud, false misrepresenatation or false pretenses.
  • debts of more than $500 for “luxuary goods and services,” incurred within 90 days or less before filing bankruptcy.
  • debts of more than $750 for “cash advances,” incurred within 70 days or less befeor filing bankruptcy.
  • debts which were not listed in the bankruptcy paperwork.
  • debts for violation of fiduciary duty, embezzlement or larceny.
  • debts that are the result of willful or malicious action causing personal injury to an individual or causing death.

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