Chapter 13 Bankruptcy Repayment Plan: What You Need to Know

If you’re planning on filing a Chapter 13 bankruptcy petition, you will need to set up a repayment plan. Here are a few basics you’ll need to know about the repayment plan process.

What is in the Repayment Plan?

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Your plan needs to show how you will provide payments to your bankruptcy trustee, who will transfer the funds to your creditors. The payments will be in fixed amounts on a monthly basis or every two weeks. The repayment period is three to five years, depending on how your monthly income compares to the applicable New Jersey median income.

The Chapter 13 Creditors Meeting

After you file your Chapter 13 petition and repayment plan, the bankruptcy trustee will schedule a meeting of creditors that you must attend.

You’ll be put under oath, and the trustee and creditors can ask about your financial affairs and repayment plan. You may be able to take care of issues with your plan ahead of time by consulting the trustee about your plan before this meeting.

The Chapter 13 Confirmation Hearing

After the creditors meeting, the bankruptcy court judge will hold a hearing to rule on whether your plan will work and if it meets US Bankruptcy Code standards.

If the plan is approved, the bankruptcy trustee will begin to distribute funds paid by you under the plan. If your repayment plan isn’t approved, you can file an adjusted version, or you may change your bankruptcy petition over to Chapter 7.

Do You Have more Questions about Chapter 13 Repayment Plan Specifics?

The arrangement of a repayment plan can become very complex, and a New Jersey bankruptcy attorney can help you navigate the finer points of your Chapter 13 filing.

Garland & Mason, L.L.C. – Bankruptcy Attorneys


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