After you have made all of your court-approved payments, submitted a certificate showing you have completed all of your financial management classes and are current in your child support and alimony, the court will grant a “full-payment ” discharge for your Chapter 13 bankruptcy.
When you are granted a discharge, the court wipes away the balance owed on all of your debts that were included in the Chapter 13 bankruptcy plan. You will need to continue to make payments on any secured debt such as your home or your car if you want to keep them.
The court may hold a brief hearing and require you to attend. The judge may give you a lecture about staying out of debt and explain the effects of the discharge. Most courts do not hold discharge hearings for Chapter 13 cases. Your bankruptcy attorney will advise you if you need to go. Regardless if you attend a discharge hearing or not, you should receive a copy of your discharge in the mail in about four weeks. Contact your trustee if you do not get it. Also, remind the trustee to stop your income deduction order after your last payment has been made.
Debtor Rehabilitation Program
A few Chapter 13 bankruptcy courts have created debtor rehabilitation/credit re-establishment programs. The goal is to reward people who have completed their bankruptcy plan by helping them get new credit.
If you would like more information about what happens after you file Chapter 13 bankruptcy, contact a Dallas bankruptcy attorney.