Repayment Plan in Chapter 13 Bankruptcy

: Chris Lee Law Firm

  Filed under: Chapter 13

repayment planWhen you file Chapter 13 bankruptcy, you will submit a plan to the courts outlining how you intend to make the payments to catch up on your debt. Certain debts will need to be paid in full during your case.

  • Priority debts are debts that are unsecured like back child support and taxes
  • Secured debt such as mortgage or vehicles if you plan to keep them

You will be required to pay all of your priority and secured debt during your Chapter 13 bankruptcy. Your nonpriority unsecured debt such as credit cards and medical debt will vary in the amount you will pay back. Using your leftover income after you pay your living expenses and priority debt will determine how much of your unsecured debt you will need to pay.

How Long to Pay

When determining how long you will make the payments, you compare your income to the state you live in median income. If you make more than your state’s median, you will be required to pay for five years, and if you make less, you can be on a three-year repayment plan

Other determinations for how long you will pay on your debt is to calculate if you have income left over after paying your living expenses. Even though you may qualify for a three-year plan, you may need the five-year plan if it will take that long for you to catch up on your debt.

If you have more questions about what you will have to pay in bankruptcy, contact a Dallas bankruptcy attorney.


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information