The MLG Blog

Chapter 13 Payment Plans

October 14, 2009

Chapter 13 Reorganization
Chapter 13 is a reorganization plan for individuals
Similar to a chapter 7, a petition is drafted and filed with court and a payment plan is proposed. A 341 meeting is scheduled as well as a confirmation hearing.
At the confirmation hearing the judge will either approve or deny your plan to repay your debts in a 3 to 5 year period.
Your income, expenses and debts will determine how much you can pay each month and therefore which creditors will get paid
Again like chapter 7 some debts must be repaid in full and this will impact which creditors get paid. Exemptions and exclusions apply in a chapter 13 as well. Assets with loans on them can be kept if the debtor can continue to make payments on those assets.
Chapter 13 has debt limits for individuals
Currently an individual can have no more than about $300,000 in unsecured debts and just over $1,000,000 in secured debts
The cost of Chapter 13’s vary greatly depending upon the debtors financial situation but is will certainly cost more than a chapter 7 and likely will cost less than a chapter 11. The filing fee for a chapter 13 is $274
Chapter 13’s are recommended for individuals who need to file bankruptcy but fail the means test of chapter 7.


Add a comment:

Enter your comment below: