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Chapter 13 Discharge Overview

A Chapter 13 discharge is not given -- it is earned. Unlike Chapter 7, where the discharge enters automatically a few months after filing, Chapter 13 requires you to complete every payment under a court-approved repayment plan that lasts 3 to 5 years. Only after you make the final payment and satisfy all other conditions does the court enter the discharge order.

This is the fundamental trade-off of Chapter 13: you commit years of income in exchange for keeping your property (including nonexempt assets that would be liquidated in Chapter 7), catching up on mortgage arrears, and -- in some cases -- discharging debts that Chapter 7 cannot touch.

How Chapter 13 Works

In Chapter 13, you propose a repayment plan that pays some or all of your debts over a 3 to 5 year period. The length of the plan depends on your income:

• Below-median income: Plan can be as short as 36 months (3 years), but can extend up to 60 months.
• Above-median income: Plan must be 60 months (5 years) unless all unsecured claims are paid in full sooner.

You make monthly payments to the Chapter 13 trustee, who distributes the funds to your creditors according to the plan. Priority debts (taxes, domestic support obligations) must be paid in full. Secured debts (mortgage arrears, car loans) are typically paid through the plan. Unsecured creditors receive whatever is left -- which may be as little as 0% in some districts.

Requirements for the Chapter 13 Discharge

To receive a discharge under Section 1328(a), you must satisfy all of the following:

1. Complete all plan payments. Every payment must be made. One missed payment at the end can prevent your discharge.
2. Complete the debtor education course. Same requirement as Chapter 7 -- you must complete an approved financial management course and file the certificate with the court.
3. Certify domestic support obligations are current. If you owe child support or alimony, you must certify that all post-petition domestic support obligations are paid in full. This is a strict requirement.
4. No prior discharge bar. Under Section 1328(f), you cannot receive a Chapter 13 discharge if you received a Chapter 7 discharge in a case filed within 4 years, or a Chapter 13 discharge in a case filed within 2 years, before the current case. Use the free screener to check.
5. Not required to register as a sex offender. Section 1328(a) was amended to add this condition.

The Chapter 13 Super Discharge

One of the most significant advantages of Chapter 13 is the "super discharge" -- the Section 1328(a) discharge covers certain debts that survive Chapter 7. Historically, the Chapter 13 super discharge was significantly broader than the Chapter 7 discharge. BAPCPA (2005) narrowed the gap, but important differences remain:

The Hardship Discharge -- Section 1328(b)

If you cannot complete your plan payments due to circumstances beyond your control, you may qualify for a hardship discharge under Section 1328(b). This is not easy to obtain. You must prove all three of the following:

1. The failure to complete payments is due to circumstances for which you should not justly be held accountable. Examples include serious illness, disability, job loss due to employer closure, or a natural disaster. Voluntary job changes or poor budgeting do not qualify.
2. Unsecured creditors have received at least as much as they would have received in a Chapter 7 liquidation. This is the "best interests" test -- the same test applied at confirmation.
3. Modification of the plan is not practicable. You must show that no reasonable modification of the plan would allow you to complete it.

What Happens If You Cannot Complete the Plan

If you fall behind on payments and do not qualify for a hardship discharge, you have several options:

• Plan modification. You can propose a modified plan with lower payments. The court must approve it, and the trustee and creditors can object. Modification is common and is often the best first step.
• Conversion to Chapter 7. You can convert your case to Chapter 7, which may provide a faster discharge. However, conversion means your nonexempt assets become available for liquidation, and the Chapter 7 means test may apply.
• Voluntary dismissal. You can ask the court to dismiss your case. Dismissal ends the case without a discharge -- all remaining debts survive. The automatic stay lifts. This is a last resort. Note that a dismissed case may affect your ability to refile.

The Section 1328(f) Discharge Bar

Section 1328(f) limits how often you can receive a Chapter 13 discharge:

• Section 1328(f)(1): No Chapter 13 discharge if you received a Chapter 7, 11, or 12 discharge in a case filed within the 4 years preceding the current case filing.
• Section 1328(f)(2): No Chapter 13 discharge if you received a prior Chapter 13 discharge in a case filed within the 2 years preceding the current case filing.

Both bars are measured from filing date to filing date. You can still file Chapter 13 within these windows for the automatic stay and structured repayment, but you will not receive a discharge at the end. This is sometimes called a "Chapter 20" strategy (Chapter 7 followed by Chapter 13 without a discharge). For details, see the Section 1328(f) explainer or use the free screener.

Chapter 13 Completion Rates

The reality of Chapter 13 is sobering. National data shows that only about 33% to 40% of Chapter 13 cases result in a discharge. The majority are dismissed before the debtor completes the plan. Common reasons for failure include:

• Job loss or income reduction
• Unexpected expenses (medical, car repair, home repair)
• Plan payments that were too high from the start
• Attorney withdrawal or disengagement
• Administrative failures (missed filings, unfiled tax returns)

Completion rates vary significantly by district, attorney, and plan structure. If you are in a Chapter 13 plan, stay in close communication with your attorney and the trustee. Request a plan modification early if your income drops -- do not wait until you are months behind.