- Section 507 units forth 10 classes of unsecured claims which Congress has, for public policy causes, given precedence of distribution over other unsecured claims. The discharge has the effect of releasing the debtor from all debts offered for by the plan allowed under section 503 or disallowed below part 502, with restricted exceptions. The bankruptcy regulation regarding the scope of a chapter 12 discharge is complicated, however, and debtors ought to seek the advice of competent authorized counsel on this regard previous to filing.
The debtor will receive a discharge after completing all payments under the chapter 12 plan as long as the debtor certifies (if relevant) that each one domestic help obligations that got here due earlier than making such certification have been paid. Furthermore, whereas affirmation of the plan entitles the debtor Vape Store to retain property as long as funds are made, the debtor could not incur any significant new debt with out consulting the trustee, because additional debt might compromise the debtor's capability to finish the plan.Eleven U.S.C.
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