What is the “Super Discharge” of Chapter 13 bankruptcy? Not all bankruptcies were created equal. Many times, people in financial distress want nothing more than a quick and easy solution to their problems, and as such, seek relief in the form of filing for protection under Chapter 7 of the Bankruptcy Code. However, Chapter 7 is not always the best solution for everyone.
What can and cannot be discharged through bankruptcy is governed by the Bankruptcy Code, and generally speaking, section 523(a) of the Bankruptcy Code lists what debts can and cannot be discharged in a personal Chapter 7 case. In contrast, Chapter 13 bankruptcies have different rules regarding what is and is not dischargeable – at least most of the time (but that is a story for another day).
What debts are and are not dischargeable under Chapter 13 of the Bankruptcy Code are found in section 1328(a). As you can probably already guess, sections 1328(a) and 523(a) are not the same. For example, under section 1328(a), some debts that are the result of a divorce proceedings can be discharged in a Chapter 13; whereas, no type of debt to a former spouse that is the result of divorce proceedings is dischargeable in a Chapter 7. Another example is noncriminal fines (i.e. parking tickets). In a Chapter 13, noncriminal fines are dischargeable. You guessed it – noncriminal fines are not dischargeable in a Chapter 7.
Many other such differences exist between the discharges available under Chapter 13 and Chapter 7 of the Bankruptcy Code, but as you can see, the discharge generally available to a debtor who has completed a Chapter 13 Plan is greater than that available under Chapter 7. As such, the Chapter 13 discharge is at times referred to as a “Super Discharge.” This Super Discharge may, in the end, provide you more relief than a simple Chapter 7 can ever imagine.
Given such differences, it is always important to speak with an attorney competent in all chapters of the Bankruptcy Code – not just Chapter 7.
Should you have any questions about the different types of bankruptcy, or what type of bankruptcy is right for you, please feel free to contact Bankruptcy Attorney, Matthew L. White of udallshumway.com, or call 480-461-5334 to schedule your free consultation!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding The “Super Discharge” of Chapter 13, or any other Bankruptcy matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.