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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 West 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 outlines how the debtor proposes to pay off their debts over a period of time, usually three to five years. The plan must be approved by the court to ensure it meets the legal requirements and is fair to all parties involved. Once approved, the debtor makes regular payments, typically biweekly or monthly, to a court-appointed trustee. The trustee then distributes these payments to creditors as outlined in the plan. Creditors may receive less than the full amount of their claims, depending on the terms of the confirmed plan.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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West-Virginia State Code

West-Virginia State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

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