I’m about to make my last payment in my Chapter 13 Bankruptcy. I heard that now I get a discharge. What does that mean and how long does it take ?

Posted on July 22, 2013. Filed under: Chapter 13 Bankruptcy, Consumer Alerts, Consumer Bankruptcy Attorney | Tags: |

A discharge is your ultimate goal. It means that you have completed your requirements under your plan and you are relieved of any efforts to collect from any of the creditors you listed in your schedules, other than the creditors paid outside your plan. The discharge will come in the form of a document from the Bankruptcy
Court.

Before the Bankruptcy Court will issue the discharge, the Trustee must audit and review your case before closing it. This normally takes the Trustee about 60 days. During that period the
Trustee double checks your payments and reviews your case to insure that you have done everything required from his standpoint. Then the Trustee notifies the Court and they will issue your discharge approximately 30 days from that date.

After all your hard work and effort to complete your plan, you should now enjoy what has been termed a “fresh start”. You should no longer need to endure the credit problems that brought you to seek Chapter 13 relief in the first place. Hopefully you have gained some knowledge and can work to avoid a similar credit crunch in the future.

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