Chapter 13 bankruptcy offers a structured repayment plan to help individuals regain control of their finances over a period of three to five years. Unlike Chapter 7, which involves liquidation, Chapter 13 allows debtors in Florida to keep their assets while repaying a portion of their debts. At the end of the repayment period, certain remaining debts may be discharged—or legally wiped out. At Bankruptcy Lawyers Miami, we provide legal assistance to the Miami-Dade County public to help navigate this process effectively.

Common Debts Discharged in Chapter 13 Bankruptcy

The types of debt that may be discharged under Chapter 13 include both unsecured and some secured debts. Here's a breakdown:

1. Credit Card Debt

Most credit card balances are dischargeable. This includes purchases, late fees, and penalties.

2. Medical Bills

Unpaid medical expenses are considered unsecured debts and are commonly discharged at the end of a Chapter 13 plan.

3. Personal Loans

Unsecured personal loans, including payday loans and loans from friends or family, are usually dischargeable.

4. Utility Bills

Outstanding utility bills (such as water, gas, and electricity) incurred before filing may be included in the discharge.

5. Certain Legal Judgments

Some judgments related to breach of contract or negligence claims may be dischargeable, provided they don't fall under fraud or willful misconduct.

6. Lease Obligations and Old Auto Loans

Debts from terminated leases or repossessed vehicles might be discharged, depending on the specifics of the case.

Debts That Are Generally Not Discharged

While Chapter 13 provides a broader discharge than Chapter 7 in some respects, it does not eliminate all types of debt. Here are examples of debts that typically remain:

• Student loans (unless undue hardship is proven)
• Most tax debts
• Child support and alimony
• DUI-related fines and criminal restitution

How Bankruptcy Lawyers Miami Can Help

Our firm works with residents of Miami-Dade County to determine which debts qualify for discharge under Chapter 13. We guide our clients through every phase—from filing the petition to completing the repayment plan—ensuring they make informed decisions to secure a more stable financial future.

If you're considering Chapter 13 bankruptcy and want to know what debts you can eliminate, contact Bankruptcy Lawyers Miami today for personalized support.