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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 14 days after the petition is filed. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.

In Maryland, as in all states, the regulations regarding the filing of a repayment plan in a bankruptcy case are governed by federal bankruptcy law, specifically under Chapter 13 of the United States Bankruptcy Code. When an individual files for Chapter 13 bankruptcy, they must submit a repayment plan either with their petition or within 14 days after the petition is filed, unless the court grants an extension. This plan outlines how the debtor intends to pay off their debts over a three to five-year period. The plan must be approved by the court and includes regular payments to a trustee, who then distributes the funds to creditors. The repayment plan may propose to pay creditors less than the full amount owed. The trustee's role is to ensure that the debtor makes payments on time and that creditors receive the funds as outlined in the approved plan.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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Maryland State Code

Maryland State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles