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Removing Post Petition Claims With Chapter 13 Discharge

Generally, a discharge in a chapter 13 case will not discharge post-petition debt.  Thus a $100k in medical bills that comes from an auto accident after the chapter 13 is filed remain your responsibility.  Most people think the only way you can discharge such post petition debt in a Chapter 13 case is by converting to Chapter 7 per 11 USC 348(d):

(d) A claim against the estate or the debtor that arises after the order for relief but before conversion in a case that is converted under section 1112, 1208, or 1307 of this title, other than a claim specified in section 503(b) of this title, shall be treated for all purposes as if such claim had arisen immediately before the date of the filing of the petition.

Yet conversion is not always possible due to income, prior filings, etc.  The better option is to advise the creditor you are in a pending Chapter 13 Bankruptcy. And that any collection efforts would be considered automatic stay violations.   Then advise the creditor to file a claim.

Once The Claim Is Filed You May Object

Once the claim is filed you may object. As being untimely under 11 USC 502(b)(9) and get a court order disallowing the claim.  Then upon discharge, that claim is also discharged pursuant to 1328(a)(8):

(a) Subject to subsection (d), as soon as practicable after completion by the debtor of all payments under the plan……… the court shall grant the debtor a discharge of all debts provided for by the plan or disallowed under section 502 of this title…..

Hence what might have been a $100k post petition debt is discharged upon plan completion.

Doan Law answers to your chapter 7 and 13 bankruptcy questions. Meet with our expert attorney at any of our San Diego offices call (760) 450-3333.

The San Diego Bankruptcy Attorneys of the Doan Law Firm, California’s Largest Family of Attorneys, Specializing in Bankruptcy, and Non-Bankruptcy Alternatives.

At Doan Law our Bankruptcy Attorneys will answer all your Chapter 7 and Chapter 13 Bankruptcy questions. Call us now to meet with one of our expert bankruptcy attorneys, at any of our San Diego Bankruptcy offices, call (760) 450-3333.

For more information from an experienced San Diego Bankruptcy Attorney from Doan Law Firm, please CLICK HERE. Hablamos Espanol.

PURSUANT TO THE NEW LAWS, WE MUST DISCLOSE THAT WE ARE A DESIGNATED DEBT RELIEF AGENCY UNDER 11 U.S.C. ß528. WE HAVE SUCCESSFULLY ASSISTED TENS OF THOUSANDS OF SOUTHERN CALIFORNIANS IN FILING BANKRUPTCY, DISCHARGING BILLIONS OF DOLLARS, AND WILL CONTINUE TO DO SO UNDER THE LAWS.