Practice Areas
- Bankruptcy
The Chapter 13 plan
A Chapter 13 plan is a document filed with or shortly after a debtor’s Chapter 13 bankruptcy petition.
The plan details the treatment of debts, liens and the secured status of assets and liabilities owned or owed by the debtor in regard to the bankruptcy petition. In order for a plan to take effect, it must meet a number of requirements.
These are specified in § 1325 and include:
-providing that unsecured creditors will receive at least as much through the chapter 13 plan as they would in a chapter 7 liquidation
-either not be objected to, repay all creditors in full, or commit all of the debtor’s disposable income to the Chapter 13 plan for at least three years (or five years for a debtor who makes an above median income)
Under Chapter 13, the debtor proposes a plan to pay his creditors over a 3- to 5-year period. This written plan details all of the transactions (and their durations) that will occur, and repayment according to the plan must begin within thirty to forty-five days after the case has started. During this period, his creditors cannot attempt to collect on the individual’s previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed.
Chapter 13 Plan Payments
Chapter 13 filed in Florida? Your Plan payment is due within 30 days of filing your case. It does not matter whether or not you have attended your meeting of creditors; the trustees have to be paid.
If your payment isn’t there on time, you may have problems with your Chapter 13 case.
Most Florida consumers are either in a 36 month or 60 month Plan depending on their household income. Plans cannot extend for more than 60 months after your bankruptcy is filed, so once you hit that limit it’s over.
It does not cost you anything to sit down and talk with an experienced bankruptcy attorney. At Boyette, Cummins & Nailos Law Firm, we will sit down with you and go over your options, even the ones that don’t include bankruptcy, and put together a plan of action to help make your future a little brighter.
