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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 New Mexico, as in other states, when an individual files for Chapter 13 bankruptcy, they are required to submit a repayment plan either with their petition or within 14 days after the petition is filed, unless the court allows an extension. This plan outlines how the debtor intends to pay off their debts over a three to five-year period. The repayment plan must be approved by the court to ensure that it is feasible and fair to all parties involved. Once approved, the debtor makes regular payments, usually biweekly or monthly, to a trustee appointed by the court. The trustee is responsible for distributing these payments to creditors as specified in the plan. Creditors may receive less than the full amount owed to them, depending on the terms of the repayment plan. This process allows debtors to reorganize their finances and manage their debts more effectively.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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New-Mexico State Code

New-Mexico State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles