Does Chapter 13 bankruptcy require repayment of all debts?

One of the most common forms of bankruptcy today is Chapter 13 bankruptcy. In a chapter 13,  you declare bankruptcy but you agree to a settlement plan with your creditors that has you repaying most of your debts over a three to five year period under the supervision of a court bankruptcy trustee. If you are filing for Chapter 13 bankruptcy protection, you may be confused about whether or not you will have to repay all of your debts, since the concept of a repayment bankruptcy is a bit strange to most people.  You may also wonder about things like common mortgage modifications or modification of debt. So, does Chapter 13 bankruptcy mean you have to repay all of your debts, or just some?

• Chapter 13 bankruptcy does not mean that you will have to repay all of your debts.  
• The court appointed bankruptcy trustee will look at the debts and various assets that you have, as well as your potential for earning income, and decide which debts will have to be repaid and which debts will he forgiven.  
• In most cases, there are also certain debts that cannot be forgiven, or discharged, such as tax debts, child or spousal support, or other court ordered debts.  These of course will have to be paid in full.

To determine what is likely to happen to your specific debt, based on how much you owe and whether the debt is secured or unsecured, you should strongly consider speaking with a bankruptcy attorney in your local area.