FAQs on Chapter 13 to Discharge Debt


It has been observed that the reason people fail to repay their credit bills is because of some sort of unavoidable hardships. It could be related to their relationship, career, health and other aspects of life. Chapter 13 bankruptcy is there to assist people in this situation. The debtor will get a particular time span to pay back a part of their debts and once the payments are complete, all the debts are forgiven. It takes longer than Chapter 7 and is more expensive as well. It turns your debts into monthly affordable payments for you. The rules and regulations vary from place to place. For people who are confused on how to file bankruptcy in Oklahoma, here are some answers of FAQs for them.

What is eligible?

A person can file for chapter 13 bankruptcy if;

  1. He or she is a citizen of the U.S or have own property or business here.

  2. He or she has a consistent source of income.

  3. The unsecured debts are less than $307,675 and secured debts are less than $922,975.

  4. There has been no filing for bankruptcy in the last 180 days.


When is it better than Chapter 7 Bankruptcy?

If a person has not qualified for the Chapter 7 bankruptcy, whereas he or she has enough income to pay off the unsecured debts, Chapter 13 bankruptcy is for him or her. Also, if the debt is too large to be approved under Chapter 7, this option is better. Chapter 13 is for the debtors who need relief from creditors and need more time to pay them back.

What is not dischargeable under Chapter 13?

Here are some of the limitations for Chapter 13 bankruptcy. These are not dischargeable under Chapter 13:

  • Debts which are not included in the plan.

  • Child support or alimony.

  • The majority of tax debts.

  • Restitution debts for personal injury, death or any criminal case.

  • Debts accumulated during a bankruptcy case.


Are the debts fully paid?

Certain debts, like child support or alimony, have to be paid fully. Other than that, the person only has to pay the part of the debts that are reasonable and affordable for you. On the completion of the case, all the remaining debts will be discharged.

When the payments would start?

The person will have 30 days to start paying the set amount for each month until the plan is completed. The payment mode can be money order or checks to the trustee.

Who will approve the plan?

Not the creditors but the bankruptcy court will approve the plan. The creditors can object but a valid reason has to be shown to the court.

If you are in such a situation where you don’t know how to file bankruptcy in Oklahoma and are totally fed up with the creditors’ harassments, you should seek the help of an attorney who has expertise in dealing with such cases. Chris Mudd & Associates is one firm where you can find an experienced lawyer to get rid of your debts easily under Chapter 13 bankruptcy.

** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.