Do I Have to Pay Back All of My Debts in a Chapter 13 Bankruptcy?
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📌 Key Takeaways Table
| Topic | Details |
|---|---|
| Debt Repayment | Not all debts must be paid in full under Chapter 13. |
| Secured vs. Unsecured | Secured debts are prioritized over unsecured debts. |
| Priority Debts | Certain debts like taxes and child support must be paid in full. |
| Disposable Income | Your repayment plan is based on your disposable income. |
| Plan Duration | Chapter 13 plans last 3 to 5 years. |
| North Carolina Rules | Local practices and exemptions impact your case. |
What Is Chapter 13 Bankruptcy?
If you’re drowning in debt but want to keep your home, car, or other important assets, Chapter 13 bankruptcy might be the right path…
For a full breakdown of how Chapter 13 works, visit our complete guide to Chapter 13 bankruptcy.
How Much of Your Debt Must Be Paid Back?
One of the most common questions people ask when considering Chapter 13 bankruptcy is: “Do I have to pay back everything I owe?”…
Types of Debt in Chapter 13
1. Secured Debts
These are debts tied to property, like mortgages, car loans, and appliance loans…
Learn more in our guide on secured vs. unsecured debt in bankruptcy.
2. Unsecured Debts
These include credit card balances, medical bills, and unsecured personal loans…
3. Priority Debts
These are debts that must be paid in full in Chapter 13…
See our post on priority vs. nonpriority debt in bankruptcy.
Debts That Must Be Paid in Full
| Debt Type | Must Be Paid in Full? |
|---|---|
| Mortgage arrears | Yes |
| Car loan arrears | Yes |
| Child support/alimony | Yes |
| Certain income taxes | Yes |
| Medical bills | No |
| Credit card debt | No |
| Personal loans | No |
Read more about debts discharged in Chapter 13 bankruptcy.
How Is Your Chapter 13 Repayment Plan Calculated?
The idea behind Chapter 13 is not to pay off everything you owe — it’s to pay back what you can afford…
Learn more about how your Chapter 13 payment is calculated.
What Happens If Your Financial Situation Changes?
In North Carolina, if your income changes, you can request a plan modification or convert to Chapter 7…
Read more about what happens if your income changes during Chapter 13.
What If You Can’t Keep Up?
If you fall behind, the court could dismiss your case — but you have options…
Consider a payment reduction request or other adjustments.
Modifying Your Plan Midway Through
If your life circumstances change during your 3- to 5-year plan, the court allows for plan modification…
Read more about modifying Chapter 13 payments.
What Happens at the End of Chapter 13?
Once you complete your plan, remaining non-priority unsecured debts may be wiped out…
Visit our guide on what to expect at the end of Chapter 13.
Final Thoughts: You’re Not Alone — You Have Options
The idea that you must pay back every dollar you owe in Chapter 13 simply isn’t true. In North Carolina, how much you pay depends on your income, the type of debt you have, and your financial situation…
If you’re thinking about filing, schedule a free consultation with our team at Duncan Law today.
Contact us for a free consultation today
Charlotte: (704) 563-1224
Greensboro: (336) 856-1234
Winston-Salem: (336) 245-4294
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