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Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017)

State:
Louisiana
Control #:
LA-SKU-0096
Format:
PDF
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Description

Chapter 13 Plan/Modified Plan (Effective December 1, 2017) The Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017) is a court-approved debt repayment plan that allows individuals who are financially overwhelmed to pay off their debt over a period of three to five years, rather than all at once. This plan is available to individuals who have a regular source of income, such as a job or other form of regular income, and who are able to pay a portion of their debt each month. This plan is voluntary and does not require that creditors agree to the terms of the plan. The Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017) is divided into two types: the Standard Plan and the Modified Plan. The Standard Plan requires that all unsecured creditors receive at least the same amount that they would receive if the debtor were to file for Chapter 7 bankruptcy, while the Modified Plan allows the debtor to pay only a portion of their unsecured debt over a three to five-year period. Under this plan, the debtor is required to make monthly payments to the court-appointed trustee, who in turn distributes the payment to creditors. The debtor is also required to submit a budget to the trustee each month indicating their income and expenses. The trustee will review the budget and adjust the payment amount accordingly. At the end of the repayment period, any remaining debt will be discharged.

The Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017) is a court-approved debt repayment plan that allows individuals who are financially overwhelmed to pay off their debt over a period of three to five years, rather than all at once. This plan is available to individuals who have a regular source of income, such as a job or other form of regular income, and who are able to pay a portion of their debt each month. This plan is voluntary and does not require that creditors agree to the terms of the plan. The Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017) is divided into two types: the Standard Plan and the Modified Plan. The Standard Plan requires that all unsecured creditors receive at least the same amount that they would receive if the debtor were to file for Chapter 7 bankruptcy, while the Modified Plan allows the debtor to pay only a portion of their unsecured debt over a three to five-year period. Under this plan, the debtor is required to make monthly payments to the court-appointed trustee, who in turn distributes the payment to creditors. The debtor is also required to submit a budget to the trustee each month indicating their income and expenses. The trustee will review the budget and adjust the payment amount accordingly. At the end of the repayment period, any remaining debt will be discharged.

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Louisiana Chapter 13 Plan/Modified Plan (Effective December 1, 2017)