Chapter 13 Repayment Plan

There are several options for consumers wishing to declare bankruptcy. One of them is Chapter 13. In order to be eligible, an individual must have a regular income and a specific amount of debt. If the decision is to obtain a Chapter 13, the individual will need to undergo a restructuring and/or reorganization of finances and other money matters. Moreover, there is one specific criterion concerning a bankruptcy filed under Chapter 13. A Chapter 13 repayment plan is a necessity for anyone filing. A Chapter 13 repayment plan must include the following: realistic arrangement to pay 100% of the administrative fees – including lawyers and trustee, 100% of the priority and secured debts and 100% of the mortgage to keep the house or other property. The Chapter 13 repayment plan must also show intent to pay 0 to 100% of the unsecured debts as well as indicate the timeframe of the plan.

Fast Facts

  • In 2009, consumer filings under Chapter 13 were 28%.
  • Bankruptcy filings for 2008 under Chapter 13 were 33%, down from 39% in 2007.

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