When will my debts be discharged?

When Will I Receive a Discharge of my Debts?

As a general rule, most unsecured debts will be discharged in a chapter 7 and the portion which was not paid pursuant to the chapter 13 plan will be discharged in a chapter 13. An unsecured debt is a debt where the creditor is not holding any collateral or security to enforce payment of the debt. The most common examples of unsecured debts are credit cards/credit lines, medical bills, and utility bills.

About 3 months after the Chapter 7 meeting of creditors, each debtor will receive a notice in the mail indicating that their debts have been discharged. This discharge, however, will not include secured debts to be reaffirmed, and any non-dischargeable debts (See Above). If a creditor objects to discharge of a debt or other litigation is filed, the discharge may be delayed.

In a Chapter 13 the case is audited after receipt of the final plan payment to make sure that the debts were paid in the manner that was set out in the plan. Afterwards, the trustee sends a notice to the bankruptcy court, which in turn mails a discharge notice to all creditors and the debtor. This usually occurs about 3 months after the last payment is made.