Examples of Possible Chapter 13 Bankruptcy Plans

Finding bankruptcy chapter 13 repayment plan examples is difficult because every chapter 13 bankruptcy is different. The individual plan you create is based on your debts and your income and must be agreed to by your creditors and the bankruptcy court. However, there are certain things that essentially all chapter 13 bankruptcy plans will have in common, and by reviewing the basics of a chapter 13 plan, you'll get a better idea of what to expect.

Chapter 13 Repayment Plan Examples

A chapter 13 repayment plan is a plan wherein you agree to repay a portion of the debts you have. The repayment plans:

• Typically extend over a three to five year period of time. During this time, you'll be making monthly payments to the bankruptcy trustee, who will distribute the money appropriately among the creditors that you are repaying
• Usually cover unsecured debts only. For example, if you have credit card debt or medical bills that you haven't paid, these things can all be included in a chapter 13 repayment plan. Things like your mortgage and car loans usually aren't part of the repayment plan, since these debts are secured by assets and if you can't pay for those assets, the lenders will still have the right to repossess them (although they can't do this while your bankruptcy filing is actually pending or going on).  It is, however, important to note that in certain instances it may be possible to change the terms of secured debt using procedures such as a "cram down" for mortgages- it just is a bit harder to do than dealing with unsecured debt.
• Are generally based on the amount of debt you owe and the amount of money you make. In other words, the plans won't expect you to make payments that are so large you have nothing left to live on. Your required monthly expenses will be considered and compared to what you make each month and, using this information, the court and your creditors will consider whether a proposed repayment plan is fair or not. 

Getting Help

Chapter 13 bankruptcy can be a complicated process with a lot of paperwork. If you are going through the process, you won't want to do it on your own. You should strongly consider working with an experienced bankruptcy attorney who can help you to arrange a payment plan that is likely to be approved by both the court and your creditors so your bankruptcy can proceed quickly.