If you have read through some of the previous posts in this blog, you will likely have a basic understanding of the two main types of personal bankruptcy. Chapter 7 allows for a complete discharge of most debts, although you might lose some assets. Chapter 13 allows you to repay your debt through a manageable repayment plan, and you have a better chance of keeping your home and vehicles. However, you and other Eugene residents may wonder if you can get rid of some of your debt in a Chapter 13 bankruptcy without having to repay it.

According to Bankrate, you may receive a greater discharge of debt through Chapter 13 than you might have realized. First, you would follow the terms of the repayment plan that you worked out with the court and your creditors. After the usual three to five years of repayment, most of the remaining debt should be wiped clean. The good news for you is that, while you are able to repay a great deal of your debt, your overall repayment burden is often significantly reduced in a Chapter 13 bankruptcy.

In order to keep your house and vehicles, these secured loans will be a priority in your repayment plan. Your unsecured loans – such as personal loans, credit cards and medical debt – will be addressed next. Some of these loans may be discharged in full.

Chapter 13 bankruptcy has the potential to offer you a more flexible, promising repayment and discharge plan than you might have thought at first. However, the content in this blog is meant as general information only and should not replace the advice of a lawyer.