Discharge

• When the court issues a discharge order, it permanently forbids creditors from taking action against you for debts provided for under the plan or those that were disallowed when the plan was established. Creditors my not call, send notices, file a lawsuit, garnish your wages or employ any other measure of collecting a discharged debt. While a discharge of debt normally closes the bankruptcy case, all contested matters must clear the court and the trustee must file her final accounting before the case is permanently closed.
  
  

Notification of Discharge

• After you certify that support obligations due before filing have been satisfied, you have completed the court-approved financial management course and you have not received a Chapter 13 discharge within two years, or Chapter 7, 11 or 12 discharge in the past four years, you will receive a letter from the court detailing the discharge of your debts. It is important that you keep the discharge paperwork as it can mean the difference between getting a loan or not in the future. You may also need the discharge letter if a listed creditor contacts you after the discharge. Sending him a copy of the letter should get him off your back. In addition to you, the court will notify all creditors of the discharge including those enumerated on your list of creditors, on your repayment plan or any others who entered an appearance in your case.
  
  

Non-Dischargeable Debts

• Even though you finish the repayment plan established under Chapter 13 rules, the bankruptcy code prohibits discharging long-term debts such as your home mortgage. The court will also not discharge domestic support obligations such as alimony or child support, nor will it discharge obligations brought about because of an accident involving driving under the influence of drugs or alcohol when the result was injury or death. Restitution and fines obligated because of a criminal prosecution will also remain due and payable, as will debts for most government-guaranteed student loans.
  
  

Hardship Discharge

• If the court has authorized a hardship discharge because of circumstances beyond your control, and your inability to file and implement a modified repayment plan, the same rules apply as far as notification and stay of collection are concerned. However, the hardship discharge limits debts discharged to those authorized in a Chapter 7 liquidation bankruptcy case. In a standard Chapter 13 discharge, debts for willful and malicious injury to property are discharged, as are debts you incur to pay non-dischargeable tax indebtedness and settlement debts that come out of a divorce or separation action. Since you cannot discharge these debts in a Chapter 7 case, the court will not discharge them in a Chapter 13 hardship discharge.