Select your state

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 North Carolina, as in all states, the process of filing for bankruptcy is governed by federal law, specifically the U.S. 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 period of time, usually three to five years. 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 often allows for creditors to receive less than the full amount owed. The trustee's role is to ensure that the debtor complies with the plan and to disburse payments to creditors as specified. It's important for debtors to adhere to the terms of the repayment plan, as failure to make the required payments can lead to dismissal of the bankruptcy case or conversion to a Chapter 7 bankruptcy.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

Articles

North-Carolina State Code

North-Carolina State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles