Chapter 13 Plan

State:
Multi-State
Control #:
US-B-113
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PDF
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Description

Chapter 13 Plan A Chapter 13 Plan is a repayment plan for individuals who have filed for bankruptcy under Chapter 13 of the Bankruptcy Code. It is a binding agreement between the debtor and their creditors, outlining how the debtor will repay their debts over a three to five-year period. It must be confirmed by a bankruptcy court in order for it to take effect. Chapter 13 Plans can be used to catch up on past-due mortgage payments, pay off priority debts, and reorganize secured debts. There are three main types of Chapter 13 Plans: the traditional plan, the modified plan, and the disposable income plan. The traditional plan allows the debtor to keep property, such as a car or home, while repaying debts over a three to five-year period. The modified plan adjusts the repayment period and amount, allowing for reduced payments. The disposable income plan requires the debtor to pay all disposable income to creditors until the debts are paid off.

A Chapter 13 Plan is a repayment plan for individuals who have filed for bankruptcy under Chapter 13 of the Bankruptcy Code. It is a binding agreement between the debtor and their creditors, outlining how the debtor will repay their debts over a three to five-year period. It must be confirmed by a bankruptcy court in order for it to take effect. Chapter 13 Plans can be used to catch up on past-due mortgage payments, pay off priority debts, and reorganize secured debts. There are three main types of Chapter 13 Plans: the traditional plan, the modified plan, and the disposable income plan. The traditional plan allows the debtor to keep property, such as a car or home, while repaying debts over a three to five-year period. The modified plan adjusts the repayment period and amount, allowing for reduced payments. The disposable income plan requires the debtor to pay all disposable income to creditors until the debts are paid off.

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Chapter 13 Plan