Chapter 13 Bankruptcy
What is the proposed payment plan?
Under Chapter 13, your payments must represent either
- full satisfaction of your debts or
- all your disposable income for a three- to five-year period, that is, whatever is left over from your total income after you have paid for taxes and necessary living expenses.
If there is no objection by creditors or the trustee, the plan may be more flexible. The plan that you prepare for review by your lawyer should take into account your income from all sources and your necessary expenses. What is left from your income after paying living expenses will be available for disbursement to your creditors.
Your plan must provide for payment in full of all priority claims, such as taxes, although you can arrange to pay them over the life of the plan.
>>What does a Chapter 13 bankruptcy involve?
>>What steps do I need to take before filing for bankruptcy?
>>Who can use Chapter 13?
>>What is the proposed payment plan?
>>What is the role of the Chapter 13 trustee?
>>What are the main effects of filing under Chapter 13?
>>Can I save my home and other assets by filing under Chapter 13?