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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 Virginia, as in all states, the regulations regarding the filing of a repayment plan in a bankruptcy case are governed by federal bankruptcy law, specifically under Chapter 13 of the United States Bankruptcy Code. When an individual 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 grants an extension. This plan details how the debtor proposes to pay off their debts over a period of time, usually three to five years. The debtor must make regular payments, often biweekly or monthly, to a court-appointed trustee, who then distributes the funds to creditors as outlined in the plan. The repayment plan must be approved by the court, and it may allow creditors to receive less than the full amount of their claims. It's important for debtors to adhere to the requirements of the Bankruptcy Code and to meet the deadlines for filing their repayment plan to ensure the smooth progress of their bankruptcy case.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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Virginia State Code

Virginia State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

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