Chapter 13 bankruptcy payment plan

When you start a Chapter 13 bankruptcy process you fill a packet of forms, list your income, expenses and debts. After that you file these forms to a bankruptcy court.Along with these forms you need to prepare a payment plan period.

When you file for Chapter 13 you will need to make monthly payments to the bankruptcy trustee (an official appointed by the bankruptcy court).He will pay your creditors with this money and you must make every payment in order to successfully complete the repayment plan.

A Chapter 13 bankruptcy payment plans must contain:

1. Administrative claims that will be paid 100%. These include: your filing fee, the trustee’s commission (3% to 10% of each monthly payment), and the lawyer’s cost (if you have one)

2. Priority debts .These debts have to be paid 100% and must include: back alimony and child support, tax debts, wages, salaries, or commissions you owe to employees and any contributions you owe to an employee benefit fund.

3. Mortgage payments that will be paid 100%

4. Other secured debs that need be paid 100% if you want to keep the property.

5. Unsecured debts will be paid anywhere from 0% to 100% of what you owe.
The exact amount that you will need tp pay every month depends on several factors like: how long your plan lasts, the total value of your nonexempt property and the amount of disposable income you have each month to put toward your debts.