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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 South Dakota, 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 for 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 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 to a trustee, who then distributes the funds to creditors as specified in the plan. It's important to note that the plan may propose to repay creditors less than the full amount owed. The specific procedures and requirements for the repayment plan and its approval process are governed by federal bankruptcy law, as bankruptcy is not typically regulated by state law.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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South-Dakota State Code

South-Dakota State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles