March 2018 Bankruptcy Courts Torn on Denying a Chapter 13 Discharge for Failure to Make Direct Payment. If you fail to make direct payments on a nondischargeable debt such as a mortgage, said failure is not grounds for denying your chapter 13 discharge, according to Bankruptcy Judge Thomas L. Perkins of Peoria, Ill. Judge Perkins may be in the minority of recent decisions favoring chapter 13 debtors who have made all payments to the trustee and whose unsecured creditors were unaffected.
Posted Mar 8, 2018
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