Order Of Discharge (Chapter 13) {B3180W}

Form 3180W, Chapter 13 Discharge. A Chapter 13 Discharge refers to the order issued by the bankruptcy court that discharges the debtor from personal liability for most debts covered by the Chapter 13 plan. This means that creditors cannot attempt to collect the discharged debts from the debtors personally, and any attempt to do so is a violation of the court order. Creditors who violate the order can be held liable for damages and attorney's fees. However, a creditor with a lien on the debtor's property may still enforce the lien, subject to any exceptions or limitations in the bankruptcy plan. For example, a creditor may have the right to foreclose on a home mortgage or repossess an automobile if the debtors are in default on those loans. It's important to note that not all debts may be discharged under Chapter 13 bankruptcy. Generally, the discharge removes the debtors' personal liability for debts provided for by the Chapter 13 plan, but some debts may be excepted from discharge, such as certain taxes, student loans, and domestic support obligations. If the bankruptcy case involves community property, special rules may apply to protect certain community property owned by the debtor's spouse, even if that spouse did not file for bankruptcy. Finally, it's worth noting that the order of discharge does not close or dismiss the case. The debtors remain under the supervision of the bankruptcy court until all obligations under the Chapter 13 plan have been completed, including any payments to secured creditors, taxes, and domestic support obligations. www.FormsWorkflow.com