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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 Ohio, as in all states, the regulations regarding the filing of a repayment plan in a bankruptcy case are governed by federal bankruptcy law, not state law. According to the U.S. Bankruptcy Code, specifically under Chapter 13 bankruptcy, a debtor is required to file a repayment plan either with their petition or within 14 days after the petition is filed, unless the court grants an extension. This plan must detail how the debtor proposes to pay off their debts over a period of time, usually three to five years. The plan must be approved by the court after a hearing, and it obligates the debtor to make regular payments to a trustee, who then distributes the funds to creditors as outlined in the plan. The repayment plan may result in creditors receiving less than the full amount of their claims. It's important for debtors to work with an attorney to ensure that their repayment plan meets all legal requirements and is feasible for their financial situation.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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Ohio State Code

Ohio State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

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