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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 Wisconsin, as in all states, the process for filing a repayment plan in a bankruptcy case is governed by federal law, specifically the U.S. 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 outlines how the debtor intends to pay off their debts over a period of time, usually three to five years. The plan must be approved by the court and includes regular payments to a trustee, who then distributes the funds to creditors. The payments are typically made on a biweekly or monthly basis. The repayment plan may propose to pay creditors less than the full amount owed. The trustee plays a critical role in the process, ensuring that payments are collected and distributed in accordance with the plan's terms. It's important for debtors to adhere to the plan's terms and timelines to avoid dismissal of their bankruptcy case.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Wisconsin State Code

Wisconsin State Code

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Bankruptcy

Chapter 13 bankruptcy—repayment plan