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How Long Does Chapter 13 Discharge Take? Discharging debt through Chapter 13 may take 6 to 8 weeks after the final payment is made on your 3 to 5-year repayment plan (whichever was approved by the bankruptcy court).
For restitution, or damages, awarded in a civil action against the debtor as a result of willful or malicious injury by the debtor that caused personal injury to an individual or the death of an individual.
If a debt arose from the debtor's intentional wrongdoing, the creditor can object to discharging it. This might involve damages related to a drunk driving accident, for example, or costs caused by intentional damage to an apartment or other property.
Creditors who persistently try to collect on discharged debts are breaking the law, specifically section 524 of Title 11 of the United States Code. If the creditor in question does not voluntarily stop, you should consider legal action.
Sanctions, Punitive Awards and Attorneys Fees. Bankruptcy case law provides that a debtor may collect costs, reasonable attorneys fees, sanctions, punitive damages, and compensatory damages against creditors and their attorneys who violate the order of discharge.
What happens when a creditor files an objection? A creditor's objection does not automatically prevent a discharge of debt. The debtor gets a chance to file an answer to the objection, and the court may hold a hearing to decide the issue. This is called an adversary proceeding, and it works much like any other lawsuit.
An objection to the debtor's discharge may be filed by a creditor, by the trustee in the case, or by the U.S. trustee. Creditors receive a notice shortly after the case is filed that sets forth much important information, including the deadline for objecting to the discharge.
A hardship discharge is granted to help a debtor who cannot complete a Chapter 13 debt repayment plan for reasons that are completely outside the debtor's control. It will not be granted to debtors who cause their own difficulties, such as debtors who quit their jobs while making payments in a Chapter 13 plan.