In Chapter 13 bankruptcy, you must devote all of your “disposable income” to repayment of your debts over the life of your Chapter 13 plan. Your disposable income first goes to your secured and priority creditors. Your unsecured creditors share any remaining amount.

Will I lose my house if I file Chapter 13?

You don’t lose property in Chapter 13—that is as long as you can afford to keep it. Each state decides the type of property filers can protect, including the amount of home equity. You’ll learn how much home equity you can protect by researching your state’s homestead exemption.

Can you get a divorce during a chapter 13 bankruptcy?

But it doesn’t mean that you have to dismiss your bankruptcy. If you want to continue with your bankruptcy and obtain a discharge, here are your options. Even if you get divorced during your Chapter 13 bankruptcy, you can still continue making your regular plan payments.

What happens when one spouse gets a bankruptcy discharge?

When one spouse gets a discharge, the creditor can collect the debt from the non filing spouse, if that spouse is personally liable for the debt. If the spouses are still married, the creditor cannot, however, collect the debt from community property acquired after the bankruptcy was filed.

How are child support and alimony discharged in bankruptcy?

The child support or alimony arrears can be paid overtime as part of the reorganization that is the central part of a Chapter 13 bankruptcy filing. This cannot be done under Chapter 7 since Chapter 7 is a liquidation bankruptcy. A debtor can discharge an obligation to transfer property to an ex-spouse under the divorce decree.

Can you discharge an ex spouse’s debt after a divorce?

While you can discharge your obligation to pay a debt, you can’t discharge your ex-spouse’s payment obligations. If you’re filing Chapter 13 bankruptcy after a divorce, you will be responsible for repaying any debts attached to your name even if your ex-spouse is responsible…