Bankruptcy chapter 13 is also referred to as the wage earner plan, because it gives debtors with a sustainable income a chance to pay their debts without having to sell off their property. This provision is normally over a period of three to five years. It is an advantage to them since they are able to save their hard earned property. People in businesses such as partnerships and corporations are in a position to save their businesses.
A chapter discharge is a provision in which the property of a debtor is put under no liability on him and at the same time, the creditor is not to reclaim the debt by recouping the agreed property. However, compared to chapter 7 bankruptcy discharge, this one is complex in that, it is only valid so long as the debts under this chapter have been paid for in full.
A bankruptcy discharge in this chapter is only applicable in case the debtors domestic support responsibilities arouse prior to the bankruptcy petition been filed, and that they have not received a filed petition against them in the previous two years and finally that they have not gone through a course on financial counseling. Just like the discharge on the 7th chapter, this law relieves the debtor and the creditor of any responsibility towards the debt.
This rule also applies to assets of the debtor that have being acquired in wrong ways such as false pretense. Unless a petition is filed to have the property declared as being non discharge, the assets may be liquidated. Discharges under this chapter are broader than those in chapter 7. They might include those properties that are declared under the non discharge assets.
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