Chapter 12 Discharge is a form of bankruptcy relief that provides an individual debtor with a discharge of debts. It is also known as a “straight bankruptcy” or “liquidation bankruptcy.” Chapter 12 Discharge is available to family farmers and fishermen who have a regular income and meet certain eligibility requirements. The Chapter 12 Discharge process involves a three-step process: filing a petition, attending a creditors’ meeting, and obtaining the court’s discharge of debts. There are two types of Chapter 12 Discharge: voluntary and involuntary. Voluntary Chapter 12 Discharge occurs when a debtor decides to file for bankruptcy and meets the Chapter 12 eligibility requirements. Involuntary Chapter 12 Discharge occurs when a creditor or creditors initiate bankruptcy proceedings against the debtor. Once the Chapter 12 Discharge process is complete, the debtor is no longer liable for any debts that were discharged. This includes debts such as credit card debt, medical bills, and other unsecured debts. The discharge of debts is a permanent court order that prohibits creditors from attempting to collect on discharged debts.
Chapter 12 Discharge
Description
How to fill out Chapter 12 Discharge?
US Legal Forms is the most simple and affordable way to locate suitable formal templates. It’s the most extensive web-based library of business and personal legal paperwork drafted and verified by lawyers. Here, you can find printable and fillable templates that comply with federal and local laws - just like your Chapter 12 Discharge.
Getting your template requires only a few simple steps. Users that already have an account with a valid subscription only need to log in to the website and download the document on their device. Later, they can find it in their profile in the My Forms tab.
And here’s how you can obtain a professionally drafted Chapter 12 Discharge if you are using US Legal Forms for the first time:
- Read the form description or preview the document to ensure you’ve found the one corresponding to your demands, or find another one utilizing the search tab above.
- Click Buy now when you’re certain about its compatibility with all the requirements, and judge the subscription plan you prefer most.
- Create an account with our service, sign in, and pay for your subscription using PayPal or you credit card.
- Choose the preferred file format for your Chapter 12 Discharge and save it on your device with the appropriate button.
Once you save a template, you can reaccess it anytime - just find it in your profile, re-download it for printing and manual completion or upload it to an online editor to fill it out and sign more effectively.
Take full advantage of US Legal Forms, your reliable assistant in obtaining the corresponding official paperwork. Try it out!
Form popularity
FAQ
Advantages of Chapter 12 Bankruptcy No means test or credit counseling requirement like those in a Chapter 7 case. Assets are not at risk of liquidation. Monthly payments can accommodate seasonal earning trends and do not need to be equal. No anti-modification provision on home mortgages.
In a Chapter 11 case filed by an individual (i.e., a natural person), a discharge is granted by the court separately, after the completion of payments under the plan. A discharge is a court order relieving the debtor from liability for certain debts.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
A Chapter 12 plan must be completed within 3-5 years. Three years is the minimum plan length unless the debtor can pay all their debts sooner (including unsecured debts).
The advantages of filing Chapter 13 far outweigh the disadvantages. One of the primary benefits is that creditors will no longer harass you. A downside is that it will have a long-term effect on your credit report.
Once you've completed your Chapter 13 repayment plan, most remaining nonpriority unsecured debt balances will get discharged. Student loan balances are a notable exception?you'll remain responsible for those (at least for the present). Student loans fall into the category of nonpriority unsecured debts.
Chapter 13 Discharge Clears Qualified Debts Congratulations, you've spent years slowly repaying your debts and the plan is now complete. The judge issues the discharge and now any remaining balances on your qualified debts are forgiven. Chapter 13 bankruptcy allows for more qualified debts than Chapter 7.
Getting New Credit After Bankruptcy Lenders may charge more interest when you have a Chapter 13 bankruptcy on your record, but interest rates will go down as you show that you can handle the debt responsibly. Over time, your credit score will improve as well.