Chapter 13 bankruptcy plan

As you all know by know Chapter 13 bankruptcy is also called wage earner’s plan because it allows the debtor to repay his debts according to a pay back plan.

The debtor proposes a payment plan guided by a bankruptcy lawyer and trustee. The plan is filed with the schedules commencing the case. Also a copy of the plan will be send to the trustee and to all creditors you may have.

The Chapter 13 bankruptcy plan must be proposed in good faith and meet the following conditions:

1. the payback plan must give unsecured creditors at least as much on their claim as they would have gotten if the debtor filed Chapter 7 bankruptcy.

2. the plan must provide unsecured creditors an amount equal to the debtor’s monthly disposable income

The payback plan must also have the schedule of the payment for all propriety claims and the secure claims. Long term debts like mortgages
need to be paid 100%.You need to be aware that the payment plan must provide enough cash to pay the priority claims like tax debts or child support.
The first payment will be made witching 20 days after filling for bankruptcy and each month after. The payment will begin before the meeting
with creditors and will continue while the court resolves any disputes.The payments need to be certified fund like money or cashier checks or by by voluntary wage deduction.
Very important: You need to pay on time every month. If you miss a payment your case may be dismissed.