In this article, you'll learn how Chapter 7 bankruptcy clears debt, which debts Chapter 7 will discharge, why your filing date determines what bankruptcy covers, which debts and liens Chapter 7 bankruptcy won’t clear, and how to stop collection calls after bankruptcy.
Once you understand more about discharging debts in bankruptcy, you'll likely find that using Chapter 7 to eliminate debts you’re struggling to pay is just what you need to get a fresh financial start.
A bankruptcy discharge is an order issued by the bankruptcy court that breaks the contract between the bankruptcy filer and a creditor. Without the contract, the filer isn’t legally required to pay the discharged debt, and the creditor can’t take collection actions.
However, the debt won’t disappear entirely. The bankruptcy filer’s credit report will show the debt “discharged in bankruptcy” for up to ten years, although the notation’s impact on the debtor’s credit score will lessen over time.
Most Chapter 7 filers receive a discharge order about four months after filing the bankruptcy petition.
Chapter 7 filers discharge all of the following debts (a Chapter 13 discharge erases a few more):
You can use our list to get a general feel for whether you’re a potential Chapter 7 candidate, but it’s best to review your particular debts with a bankruptcy lawyer. Why? Because you might have dischargeable debts that don't appear above.
As much as we'd like to, we can't create a list that includes all dischargeable debts because bankruptcy law doesn’t tell us the debts you can discharge. Instead, the law tells us the debts you can’t erase in bankruptcy, which we cover in “Chapter 7 Bankruptcy Doesn’t Clear All Debts” below.
Note about fraud and utility deposits. Any debt-related misconduct or fraud can turn a dischargeable obligation into a nondischargeable debt. Also, a utility provider can’t refuse to provide service because of a bankruptcy filing but can charge a reasonable deposit to ensure future payment.
Find out about utility shut-offs and Chapter 7 bankruptcy.
Your Chapter 7 bankruptcy will discharge debts you had before filing but not after. Not even debts you incurred after filing but before you received your discharge. Here's how it works.
In short, the bankruptcy court discharges debts that existed before the Chapter 7 filing date. You’ll have to pay for anything you get on credit after filing your petition, even bills you incur before receiving a discharge.
Example. Jessica fell behind on her electric bill, listed the balance in her Chapter 7 bankruptcy schedules, and continued to use her electric service. After receiving her Chapter 7 discharge, the energy company deleted the charges predating her bankruptcy filing and billed her for the electricity she used after her bankruptcy filing date.
The discharge order won’t list the debts you wiped out in Chapter 7. Instead, it will list the debts that bankruptcy law says all filers remain responsible for paying. You’ll stay on the hook for the following:
You'll find a more detailed list of nondischargeable debts in What Is a Bankruptcy Discharge? If you’d like more information about classifying debts in bankruptcy, consider reading Types of Creditor Claims in Bankruptcy: Secured, Unsecured & Priority.
Bankruptcy automatically clears you of the responsibility to pay a mortgage, car loan, or secured debt. Bankruptcy doesn’t remove a lien giving the creditor the right to take property if you don’t pay.
For instance, you’ll lose your car if you don’t continue paying your car payment informally or sign a reaffirmation agreement. The lender can use its lien rights to repossess it during the Chapter 7 case after asking the court to lift the “automatic stay” order preventing collection efforts, or wait until the Chapter 7 case ends.
You can stop most creditor calls cold by providing your bankruptcy case number and filing date. Start by finding a filed bankruptcy document or notice. You should have one handy because you get copies of all mailings, even if a bankruptcy lawyer represents you. The filing date will be next to the case number at the top.
Why will this work? The creditor can use the information to verify your bankruptcy, and if the calls don’t stop, the creditor will be subject to sanctions. Find out more about what happens if a creditor tries to collect a debt during your bankruptcy.
Did you know Nolo has made the law accessible for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
]]>Read on to learn more about which debts get discharged at the end of Chapter 13 bankruptcy.
Not sure which chapter to file? Start by reading What Are the Differences Between Chapter 7 and Chapter 13 Bankruptcy?
You'll find a complete overview of the bankruptcy process in What You Need to Know to File for Bankruptcy in 2022.
Not all debts are treated equally in bankruptcy. Each debt falls into a particular category, which tells you whether the debt must be paid or whether it can be discharged.
A Chapter 13 repayment plan will lay out separate instructions for paying each of these three types of debt. Here are a few of the significant details:
Once you’ve completed your Chapter 13 repayment plan, most remaining nonpriority unsecured debt balances will get discharged. Student loan balances are a notable exception—you’ll remain responsible for those (at least for the present).
Below are some of the most common types of nonpriority unsecured debts. Typically, any balances on these accounts will be discharged at the end of the Chapter 13 plan.
Some debtors who would otherwise be qualified to file a Chapter 7 case, choose to file a Chapter 13 to take advantage of Chapter 13's expanded discharge list. Below are some of the debts that will get discharged in Chapter 13 but not in Chapter 7 bankruptcy.
Through Chapter 13 bankruptcy you can discharge debts arising out of your willful and malicious damage to another person’s property (the damage was intentional, not accidental) but not willful injury to another person.
If you pay your tax obligation using a credit card, that debt is normally considered nondischargeable in a Chapter 7 bankruptcy. However, in Chapter 13 you can discharge debts you incurred to pay nondischargeable tax obligations.
Domestic support obligations such as alimony or child support are always nondischargeable. However, through Chapter 13 bankruptcy, you can discharge your obligation to your spouse or former spouse for other debts assigned to you in divorce or separation proceedings.
Example. Let’s assume in your divorce decree you were assigned and required to pay the entirety of a joint credit card you held with your spouse. If you don’t pay it, the credit card company can go after both you and your former spouse, despite the family court order assigning the debt to you. You are broke and fail to pay the balance. Consider the following results, which vary depending on which type of bankruptcy you file:
When you let go of a home in a Chapter 7 case, you’ll remain responsible for property taxes, utility bills, and homeowners’ dues until the home’s title is no longer in your name (in other words, until the lender sells it in foreclosure). Some bankruptcy courts, but not all, don’t hold you responsible for homeowners’ dues if you surrender your home as a part of a Chapter 13 plan.
You’ll be able to discharge obligations you owe to a city, county, state, or other governmental agency in Chapter 13 bankruptcy, including those arising from fraud. However, you’ll have to pay any restitution or a criminal fine incurred in criminal sentencing.
If the court found that you weren’t entitled to a discharge in a previous bankruptcy case (perhaps you didn’t meet the Chapter 7 means test) or if you waived your discharge, you might be able to get rid of debt in Chapter 13. If a judge declared a particular debt nondischargeable, however, you won’t be able to get rid of it by filing another case.
Typically, bankruptcy doesn’t get rid of a creditor’s security interest (such as a mortgage or car lender’s lien) on your property. However, if certain conditions are satisfied (for instance, the debt isn’t fully secured by the collateral, and the property is worth less than what’s owed) Chapter 13 bankruptcy allows you to strip off a wholly unsecured junior lien or cram down a secured debt (reduce the loan to match the property value). The stripped or reduced portion gets reclassified as an unsecured debt and discharged at the end of the case. (To learn more, see What is Lien Stripping in Chapter 13 Bankruptcy? For more information on cramdowns, go to Cramdowns in Chapter 13 Bankruptcy: The Basics.)
A few other debts you’ll be able to discharge include:
Before you receive a discharge in Chapter 13 bankruptcy, you have to pay back a certain amount of your debts through a repayment plan. But your repayment isn’t dependent on the total amount of debt that you owe. Rather, your repayment plan amount depends on the type of debt you have, the value of your property, your income, and your expenses.
Specifically, you’re required to pay the greater of the following to your unsecured creditors:
The bankruptcy trustee pays creditors depending on the priority of the particular debt. Certain priority debts (such as recent taxes, alimony, and child support) must be paid in full, unlike nonpriority unsecured debts.
And while it’s possible that you might pay less than what you owe (especially if you have a lot of credit card or medical debt), if all of your debt is priority debt, such as recent income tax balances and support obligations, then you’ll repay it all.
After you complete all plan payments, any remaining qualifying balances get wiped out. Creditors can no longer come after you to collect those debts.
To learn more, see Unsecured Debt in Chapter 13: How Much Will You Pay?
]]>Most debtors don’t have any problem sailing through the Chapter 7 process. That said, getting a Chapter 7 discharge isn’t a sure bet. Here are two barriers to debt discharge.
For a few of the 19 categories of debt, the creditor must successfully challenge the discharge of the debt during the bankruptcy case. If a creditor doesn't raise an objection, or if it does and the court disagrees, the debt will be discharged.
In Chapter 7 cases, the debtor doesn’t have an absolute right to a discharge. To receive a discharge, debtors must fulfill the requirements of bankruptcy law. (11 U.S.C. § 727.)
If the debtor fails to follow the rules or doesn’t provide mandatory information, a creditor, the bankruptcy trustee, or the U.S. trustee can object to the entire Chapter 7 discharge. For instance, the court can deny a Chapter 7 discharge if you:
If successful, the debtor will remain responsible for all obligations.
Some types of debts are deemed nondischargeable without the need for a hearing if they fall within one of a list of prescribed categories. Unless the debtor can demonstrate extraordinary circumstances, the following debts are automatically nondischargeable:
While all of these debts are nondischargeable in Chapter 7, some can be eliminated in Chapter 13. Find out which debts are dischargeable in Chapter 13 but not Chapter 7.
Some debts aren’t automatically excepted from discharge. Creditors must ask the court to determine if they are dischargeable or not. If the creditor doesn't raise the dischargeability issue or the creditor raises the issue, but the court doesn't agree, these debts will be discharged.
If you're considering bankruptcy as an option for dealing with debt, you'll want to learn more about how it works, what it can and cannot do, and who is eligible.
Did you know Nolo has been making the law easy for over fifty years? It’s true—and we want to make sure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated April 23, 2022
]]>If you can’t protect all of your property in your Chapter 7 case, the bankruptcy trustee appointed to administer the matter will sell the nonexempt property for the benefit of creditors. When money is available, it’s considered an asset case. Any debt you fail to list in an asset case won’t be discharged.
If, however, yours is a no-asset Chapter 7 bankruptcy (there’s no money to repay creditors), the debt still might be discharged. It will depend on:
To learn more about debts discharged in Chapter 7 bankruptcy, see Debt Management: The Bankruptcy Discharge.
While you should do your best to include all debts in your bankruptcy, it’s not uncommon for debtors to accidentally omit a creditor. If you do so in a no-asset Chapter 7 case, and the creditor doesn’t suffer as a result (isn’t “prejudiced by the omission”), most courts take a “no harm, no foul” approach and will still consider the debt discharged.
The reasoning behind the “no harm, no foul” approach is that if it was an innocent mistake and the creditor wouldn’t have received anything anyway, discharging the omitted debt wouldn’t change the outcome for that creditor.
When determining whether an unlisted debt should be discharged, courts might consider factors such as:
Keep in mind that not all jurisdictions follow this basic rule. If you can’t remember all of your creditors, consider meeting with a local bankruptcy attorney who can tell you what to expect in your area.
If the omitted creditor alleges that you fraudulently failed to list its debt or that the debt is otherwise nondischargeable (for example, if you initially obtained the debt through fraud), you will likely have to litigate the issue in bankruptcy court if you want the debt discharged.
In that case, you might have to show that you made an innocent mistake, that there was no fraud involved, and that the debt is dischargeable.
Your creditors need to receive notice of your bankruptcy, so the best way to ensure your discharge is to include all your debts when filling out your bankruptcy forms.
Before you file your case, gather all of your bills and get a copy of your credit report. Then verify your obligations. Also, be sure to list debts that won’t appear your credit report, such as a loan from family or friends or an obligation you personally guaranteed.
If you find that you accidentally omitted a creditor and your bankruptcy is not yet closed, you can amend your schedules to list the omitted debt.
]]>(For more articles on the bankruptcy discharge, see Debt Management: The Bankruptcy Discharge.)
Dischargeable debts are obligations that can be wiped out by your bankruptcy discharge. When you receive your discharge, you are no longer obligated to pay any of these debts and creditors cannot come after you to collect them.
A few examples of dischargeable debt include:
(For more, see Which Debts Are Discharged in Chapter 7 Bankruptcy?)
Timing and Debt Dischargeability
If a bill comes due after you file for bankruptcy, you might find yourself wondering whether the balance will go away. It’s common to be confused about whether ongoing accounts, such as utility bills, get completely wiped out at the end of the case, or whether the bankruptcy discharge is limited to the portion owed before the filing date.
The quick answer? The court looks to the filing date.
Post-petition debts—the new bills that you incur after you file your initial bankruptcy paperwork—don’t qualify for discharge. You’ll remain responsible for paying for them. The only type of debt eligible for discharge is “pre-petition debt,” or, debt that existed before you filed your matter.
Example. Suppose that you file a Chapter 7 case. In your bankruptcy schedules, you list your overdue water, sewer, and garbage bill. The Chapter 7 discharge will wipe out any portion of the utility bill account balance that predated your filing. However, you’ll be required to pay any charges that accrued after your filing date.
The same holds true in a Chapter 13 bankruptcy. All pre-petition debts get included in the Chapter 13 plan (the three- to five-year payment plan that you must complete before receiving a discharge). All of your post-petition debts, such as a monthly cell phone bill or a new gym membership, remain your responsibility to pay.
Be aware, however, that when you’re in a Chapter 13 case, unexpected obligations can come up. Not only is this understood, but the court might be willing to adjust your plan payments to accommodate you. To learn about your options, read Post-Petition Debts in Chapter 13 Bankruptcy.
In most cases, you can eliminate dischargeable debts in bankruptcy without any repayment. However, whether your creditors will receive anything in your bankruptcy will depend on whether you are filing for Chapter 7 or Chapter 13 bankruptcy.
Most Chapter 7 bankruptcies are no asset cases—there’s nothing for the trustee to sell to pay creditors with. As a result, dischargeable debts are typically wiped out without receiving anything in Chapter 7 bankruptcy.
Further, if there are any proceeds to distribute, general unsecured debts (such as credit card obligations) are the last to get paid and receive a pro-rata share of any money left over after all priority debts (such as alimony, child support, and some taxes) get paid.
However, keep in mind that your discharge only eliminates your liability for these debts. It does not affect liens on your property (such as a mortgage or car lien). As a result, if you stop paying your mortgage or car loan, your lender can still foreclose on or repossess your property even if it cannot sue you personally to collect the debt.
In Chapter 13 bankruptcy, most dischargeable debts are considered nonpriority general unsecured claims. Depending on your income, assets, and expenses, they typically receive little or nothing through your Chapter 13 repayment plan. And they are discharged upon completion of your plan payments.
However, if a dischargeable debt is secured (such as your car loan), you have two choices. If you want to keep the car, you must continue making payments on it during your Chapter 13 bankruptcy (if you meet certain conditions, you might be able to reduce your principal balance through a Chapter 13 cramdown). Alternatively, you can surrender the car, and discharge your liability for the car loan.
]]>The court will grant your request for a hardship discharge if you can prove three conditions:
If you don’t qualify for a hardship discharge, it’s likely because you need to pay money to your unsecured creditors. If that’s the case, you can convert from a Chapter 13 to a Chapter 7 bankruptcy. The Chapter 7 trustee will sell your nonexempt property (assets you can’t protect with a bankruptcy exemption) and distribute the funds to your creditors.
If the court grants your motion for a hardship discharge, only unsecured nonpriority debts get discharged. The following debts typically aren’t wiped out in a hardship discharge:
Some debts will be wiped out in a hardship discharge unless the creditor objects to the debt by filing and winning a lawsuit called an adversary proceeding. These debts include:
If you have a debt that falls into one of these categories, your best strategy is to do nothing and hope the creditor does the same. If the creditor files the lawsuit, you’ll need to respond if you want the debt to remain dischargeable.
]]>Read on to learn some reasons a creditor or trustee might request a denial of discharge, what the legal consequences are if the judge finds for the complaining party, and more.
A bankruptcy discharge cancels your obligation to pay back qualifying debts after your bankruptcy case ends. Creditors cannot legally collect a discharged debt from you. (Find out about the debts you’ll remain responsible for in Nondischargeable Debts.)
If you’d like to dispute the debtor’s right to a discharge, you’ll need to file either an adversary proceeding (a type of lawsuit) or a motion, depending on the type of debt involved.
You must file the objection within 60 days of the date of the 341 meeting of creditors (with some exceptions—consult with a bankruptcy lawyer). The deadline date will appear on the Notice of Chapter 7 Bankruptcy Case mailed out by the court.
A creditor will usually object to the discharge of its particular debt when fraud or an intentional wrongful act occurs before the bankruptcy case. For instance, examples of nondischargeable debts, if proven, could include:
A creditor or the trustee can also object to the discharge of all debts involved in the case. This type of objection is common when the fraud is committed in connection with the bankruptcy, rather than before the filing. Examples include:
The penalty for losing any fraud-related objection can be very severe. You could face dismissal of your bankruptcy case, repaying some or all of your debts, and possibly even criminal prosecution.
Fraud isn’t always involved in an objection, however. Sometimes it isn’t clear whether a debt fits within a nondischargeable category. In that case, a creditor might ask the court to weigh in on the dischargeability status of a particular debt. For instance:
(Learn more in What Types of Bankruptcy Cases Must Be Filed as an Adversary Proceeding?)
The case starts with the filing of a written complaint (the document that initiates a lawsuit) that explains the specific reasons the party believes the debt isn’t dischargeable.
Several parties could file an adversary proceeding, including:
The parties will engage in discovery (a process that requires an exchange of evidence), and the judge will schedule a trial. If, after the trial, the judge finds for you, the debt will be discharged, and you won’t have to repay it. If the judge finds for the person who filed the suit, your debt won’t be discharged. You’ll be required to repay the debt. Of course, like any lawsuit, you can settle the adversary proceeding before trial.
]]>(For more information on how a bankruptcy discharge affects particular types of debt, see Debt Management: The Bankruptcy Discharge.)
In general, only an interested party—someone who has a stake in the outcome—can ask the bankruptcy court to revoke your discharge. In most cases, the revocation request will come from:
The grounds an interested party can use to request a revocation will depend on whether you filed for Chapter 7 or Chapter 13 bankruptcy.
If you filed for Chapter 7 bankruptcy, the bankruptcy trustee, United States trustee, or your creditors could ask the court to revoke your discharge if you:
In Chapter 13 bankruptcy, an interested party can request the court to revoke your discharge if you:
(For more information, read When the Bankruptcy Trustee Suspects Fraud.)
In Chapter 7 bankruptcy, an interested party must request a revocation based on fraud within one year after the court grants the discharge, or, if the debtor failed to report assets that were property of the estate or disobeyed court orders, within one year of the closing of the case, whichever is later. (Although a discharge is usually received early in the case, the matter might remain open for a considerable time to allow for the selling of assets.)
In Chapter 13 bankruptcy, an interested party must request a discharge revocation within one year after the court grants the discharge.
If the court revokes your bankruptcy discharge, you’ll remain liable for any previously discharged debts. Also, if you committed fraud or otherwise abused the bankruptcy system, you might have to pay fines, forfeit assets, or face criminal prosecution.
]]>(Learn more about the bankruptcy discharge.)
The SSA is tasked with processing a large number of payments ranging from disability to retirement benefits. Due to the complexity of Social Security laws and the large volume of payments issued, overpayments and mistakes are common. Most overpayments occur because people lose their eligibility for disability or other benefits (typically when they get well enough to return to work) but still continue to receive checks from the SSA.
In most cases, people are not actually aware that they are being overpaid. Most people promptly notify the SSA when they return to work or experience a change that may affect their Social Security benefits. However, if payments continue, they erroneously believe that they still qualify to receive those benefits. As a result, most people are shocked and unprepared when they receive a letter from the SSA demanding repayment of the overpaid amount (which can be substantial).
(For more articles on Social Security and Social Security Disability, visit our Social Security Center.)
Just because you owe a debt to the federal government does not mean that you can’t discharge it in bankruptcy. Certain debts owed to the government, such as recent unpaid taxes or criminal fines, are nondischargeable in bankruptcy. But a Social Security overpayment is not one of them.
In bankruptcy, Social Security overpayments are treated as unsecured debts similar to credit card debt and medical bills. So if you are unable to pay back your Social Security overpayment, filing for bankruptcy relief can allow you to discharge your obligation to the SSA. However, keep in mind that the SSA has the right to object to your discharge if it believes you were committing fraud by accepting the additional payments.
Debts acquired by false pretenses or other fraudulent means can’t be discharged in bankruptcy. If a creditor believes that you committed fraud (such as providing false information on a credit application) when you obtained the debt, it can file a complaint (called an adversary proceeding) in your bankruptcy to have the debt declared nondischargeable. (Learn more about bankruptcy adversary proceedings based on fraud.)
Just like your other creditors, the SSA has a right to object to your discharge. But fraud is typically very difficult to prove in bankruptcy. So the chances that the SSA will object to your discharge are slim. However, if the SSA believes you accepted payments knowing that you were not entitled to them, it may have more incentive to file an objection to your discharge.
If you received a large Social Security overpayment and are not able to pay it back, consider talking to a knowledgeable bankruptcy attorney in your area to discuss all of your options.
]]>However, some remaining nonpriority, unsecured debts are not discharged when your Chapter 13 plan is complete. Read on to learn the details.
Certain types of debts survive Chapter 13 bankruptcy, regardless of your income or circumstances.
In both Chapter 7 and Chapter 13 bankruptcies, child support and alimony you owe directly to an ex-spouse or child are nondischargeable. Your Chapter 13 repayment plan must provide for 100% repayment of these debts. Although you don’t have to completely pay back support you owe to a governmental child support collection agency during the life of your plan, any amount that is left over after you complete your plan is not dischargeable.
Debts you owe on fines or restitution orders contained in the sentence for conviction of any crime (yes, even traffic tickets) may not be discharged in Chapter 13.
If you have been fined by a government agency for some reason, or subjected to a penalty or a forfeiture of property, this debt will not be discharged. However, if the government agency assesses the fine because you were overpaid benefits due to your failure to report income or for some other faulty behavior, only the fine itself is not dischargeable. The amount you were overpaid is dischargeable like any other unsecured debt. However, if the agency files an action in court alleging that you obtained the overpayment through fraud, the court can rule that the overpayment is not dischargeable.
Recent income tax debts—those that first became due within the three-year period prior to your filing date—are priority debts and have to be paid in full in any Chapter 13 plan. If your Chapter 13 ends prematurely for any reason, the tax debts you have not yet repaid will remain; you will either have to pay them outside of bankruptcy or convert your Chapter 13 to a Chapter 7 bankruptcy. (For more details, see Tax Debts in Chapter 13.)
If you operate a vehicle while illegally intoxicated by alcohol or drugs, and you kill or injure someone, any debt arising out of the injury is not dischargeable. But what if you are sued and the judge or jury finds you liable but doesn’t specifically find that you were intoxicated? This may not help you: The judgment against you won’t be discharged if the bankruptcy court (or a state court in a judgment collection action) determines that you were, in fact, intoxicated.
Note that this rule applies only to personal injuries: Debts for property damage resulting from your intoxicated driving are dischargeable.
If a creditor obtains a judgment against you in civil court for personal injury or death caused by your willful or malicious act, the judgment will be nondischargeable.
Unlike the “willful and malicious” category of debts that may be nondischargeable in Chapter 7, a creditor in a Chapter 13 case need not go to court to prove that the debt should not be wiped out. Instead, these debts are automatically nondischargeable. Note that the act which gives rise to the debt need only be willful or malicious to be nondischargeable in Chapter 13, which greatly expands the types of debt that will survive discharge. For instance, a judgment for injury caused by your reckless driving would most likely survive Chapter 13 bankruptcy on the ground of “maliciousness,” whereas it might be discharged in Chapter 7 because reckless driving, through malicious, is seldom considered willful.
Finally, unlike Chapter 7, which includes damage to property, this exception to a Chapter 13 discharge applies only to debts arising from personal injury or death.
Bankruptcy requires you to list all your creditors on your bankruptcy papers and provide their most current addresses. That way, the court can mail out notice of your bankruptcy with the best chance of reaching them. If you do your part and the official notice fails to reach the creditor for some reason beyond your control—for example, because the post office errs, or the creditor moves without leaving a forwarding address—the debt will still be discharged (as long as it is otherwise dischargeable). Also, if the creditor knew or should have known of your bankruptcy through other means, such as a letter or phone call from you, the debt will be discharged.
Suppose, however, that you forget to list a creditor on your bankruptcy papers or carelessly misstate a creditor’s identity or address. In that situation, the court won’t notify the creditor and the debt almost always will survive your bankruptcy (unless the creditor wouldn’t have received any payments under your plan, a very rare occurrence). The general rule is that debts not listed in a Chapter 13 case survive the bankruptcy. This means, of course, that you should be extra careful to list all of your creditors in a Chapter 13 case. Also, if a creditor fails to file a proof of claim, you would be well advised to file one for it, especially if the claim is for a secured debt.
As in Chapter 7, a student loan cannot be discharged in Chapter 13 unless you show the bankruptcy court that paying the loan back would be a substantial hardship. In certain situations, you might be able to discharge the interest on student loans (but not the principal).
Debts based on fraud, theft, or breach of fiduciary duty are not dischargeable in Chapter 13. Bankruptcy courts in Chapter 13 cases use the same procedure for determining the dischargeability of these debts as they use in Chapter 7 cases -- that is, the debt will be discharged if the creditor fails to come forward and establish fraud in the bankruptcy court.
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