Chapter 13 bankruptcy is a legal pathway that allows individuals in Utah to reorganize their debt into a manageable repayment plan over three to five years. Unlike Chapter 7, which involves liquidating non-exempt assets to pay off creditors, Chapter 13 focuses on repayment through future income. Upon successful completion of the repayment plan, remaining eligible debts may be discharged—meaning they are legally forgiven and no longer collectible.

At Alta Legal, we are proud to assist the Provo community with personalized Chapter 13 guidance and representation throughout the bankruptcy process.

Debts Eligible for Discharge in Chapter 13 Bankruptcy

Under Chapter 13, many types of unsecured and even certain secured debts can be discharged once the plan is completed. Below are key categories of dischargeable debts:

1. Credit Card Debt

Unsecured credit card balances are among the most commonly discharged debts. This includes charges, late fees, and interest accrued prior to the bankruptcy filing.

2. Medical Bills

Chapter 13 can wipe out remaining balances on unpaid medical bills that are not paid in full through the repayment plan.

3. Personal Loans

Unsecured personal loans, including payday loans and other cash advances, are generally dischargeable in Chapter 13.

4. Utility Bills

Unpaid balances on utility bills, such as electric or gas services, may be included in the discharge.

5. Older Income Tax Debts

While recent tax debts are generally not dischargeable, older income tax obligations may qualify under specific conditions, such as being at least three years old and meeting certain filing requirements.

6. Auto Loan Deficiencies

If a vehicle was repossessed and sold for less than the loan balance, the remaining deficiency may be discharged.

7. Lease and Contract Obligations

Unpaid rent or damages from lease agreements may be discharged if included in the repayment plan.



Debts That Are Generally Not Discharged

While Chapter 13 is more flexible than Chapter 7 in terms of discharging debts, some obligations remain non-dischargeable, including:

• Child support and alimony
• Most student loans
• Recent income taxes
• Court fines and criminal restitution
• Debts for personal injury or death caused by DUI

How Alta Legal Can Help

Navigating Chapter 13 can be complex, and knowing which debts qualify for discharge is critical to your financial recovery. At Alta Legal, we are dedicated to helping residents of Provo understand their options and build a plan toward lasting debt relief.

If you're overwhelmed by debt and considering bankruptcy, reach out today to schedule a consultation. We’ll help you determine if Chapter 13 is right for you and which of your debts could be discharged.