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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19482
Experience:  B.A.; M.B.A.; J.D.
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When are unsecured debts discharged in a CH13; at the time

Resolved Question:

When are unsecured debts discharged in a CH13; at the time when the plan is confirmed or when the plan (3-5 yrs) is completed ?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 4 years ago.

Thank you for giving me the opportunity to assist you. Kindly use CONTINUE or REPLY button to ask for clarification or follow-up questions.

When are unsecured debts discharged in a CH13; at the time when the plan is confirmed or when the plan (3-5 yrs) is completed ?

Response
: When the plan is completed. Although a debtor can apply for a Hardship Discharge if through no fault of her own debtor is not able to complete the plan. For instance, if the debtor is laid off. See 11 U.S.C. Section 1328(b)

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Customer: replied 4 years ago.
I have a car loan with a crazy interest rate that I think will be confirmed at a far more reasonable rate. If I convert to a CH 7 at some point, and I want to keep the car, what will happen to the interest rate ?
Expert:  Phillips Esq. replied 4 years ago.
Thank you for the positive rating and for asking for me once more.

May I ask you to post this question as a new thread and make it attention to me? The policy of this site requires that you open a new thread for this brand new question.


Thank you very much for your cooperation.
Expert:  Phillips Esq. replied 4 years ago.

Hello: I see that you have viewed my last response, but did not post your question on a different thread as I requested. Since I have already prepared an answer for you, but was waiting for your new post, I am going to go ahead and post it in the event that you have posted, but for one reason or another I did not get it. I do not want you to think that I did not want to answer your question. Here were go:



Your Question: I have a car loan with a crazy interest rate that I think will be confirmed at a far more reasonable rate. If I convert to a CH 7 at some point, and I want to keep the car, what will happen to the interest rate ?

My Response: The lender may revert back to pre-confirmation interest rate. Once you convert to 7, the deals you made when you were in 13 are off. The parties that you made the deals with do not have legal obligation to keep the deals.



Phillips Esq. and other Bankruptcy Law Specialists are ready to help you