Many people considering bankruptcy who are often worried that they may not qualify for a Chapter 7 bankruptcy discharge don’t realize that Chapter 13 bankruptcy actually discharges more “types” of debt than Chapter 7 bankruptcy. A matter of fact, Chapter 13 bankruptcy may be the best solution for certain types of debts that simply cannot be discharged in Chapter 7 bankruptcy.

Debts that can be discharged in Chapter 13 bankruptcy; but NOT in chapter 7 bankruptcy include:

  • Debts that are the result of a marital property settlement, not including alimony may be dischargeable in Chapter 13 bankruptcy.
  • Debts that were denied a discharge in a previous Chapter 7 bankruptcy may be dischargeable in Chapter 13 bankruptcy.
  • Debts that are the result of a restitution order may be dischargeable in Chapter 13 bankruptcy unless it was because the debtor was convicted of a crime.
  • Willful or malicious torts if not in the form of a judgment.
  • Debts incurred because a debtor paid non-dischargeable taxes.

These debts will only be discharged on the approval of the bankruptcy trustee and once the debtor has completed repaying the agreed upon amount through the Chapter 13 bankruptcy plan. To find out more about your Chapter 13 bankruptcy options, contact a Dallas-Fort Worth Bankruptcy attorney.