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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 Pennsylvania, as in all states, the process for filing a repayment plan in a bankruptcy case is governed by federal bankruptcy law. Under Chapter 13 bankruptcy, which is designed for individuals with a regular income to develop a plan to repay all or part of their debts, the 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 make payments to the trustee on a regular basis, typically biweekly or monthly. The trustee is responsible for distributing these payments to creditors according to the plan's terms. The repayment plan must be approved by the court, and it may allow for creditors to receive less than the full amount of their claims. The specifics of the plan will depend on the debtor's income, debts, and other financial circumstances.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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Pennsylvania State Code

Pennsylvania State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles