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 South Carolina, as in other states, the process described pertains to Chapter 13 bankruptcy, which is a federal court process designed for individuals (or small business owners) to reorganize their debts. When a debtor 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 allows an extension. This plan outlines how the debtor proposes to pay off their debts over a three to five-year period. The plan must be approved by the court after a hearing that creditors can attend and object to if they wish. Once approved, the debtor makes regular payments to a court-appointed trustee, who then distributes the payments to creditors according to the plan's terms. These terms may include paying creditors less than the total amount owed. It's important to note that while the bankruptcy process is governed by federal law, local court rules and the practices of the bankruptcy trustee can vary by district within South Carolina.

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

South-Carolina State Code

South-Carolina State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles