How long is the repayment period for Chapter 13 Bankruptcy?

The chapter 13 repayment period depends the amount of debts and term of your repayment plan. Generally, the chapter 13 repayment period last 36 to 60 months (three to five years). Of course, your chapter 13 bankruptcy period can be shorter when you pay more than the specific amount.

During your 36 to 60 month repayment period, you must make payments to your bankruptcy trustee. You don’t have to worry about where the money is going. The bankruptcy trustee is obligated to distribute the money to your creditors. Of course, your priority creditors are paid first.

Your responsible--besides making your monthly chapter 13 payments--is to keep all your other debts current. Let’s say for example, you’ve filed bankruptcy to save your home. You must keep your mortgage payments current. When you fail to make your payments to the bankruptcy trustee and creditors, your chapter 13 petition is at risk for dismissal.

However, at the end of your three to five year chapter 13 repayment period, your debts are paid. The unsecured debts that were or weren’t paid may be discharged.

If you’re considering bankruptcy, make sure you know everything about the chapter 13 process. Thus, it’s best to talk to a bankruptcy lawyer. For example, chapter 13 comes with an automatic stay that prevents creditors from pursuing or considering foreclosure, lawsuits or wage garnishments. The lawyer will tell you about modifying your bankruptcy petition or hardship discharge if you can’t make your payments.