Chapter 13 Plan
- As part of the paperwork filed in your Bankruptcy, you will submit a Chapter 13 Plan
- In your Chapter 13 Plan, your debts are grouped into similar-type debts, and treated according to certain rules and procedures in the Bankruptcy Code. The proposed grouping and treatment is your "Plan" to get through the Bankruptcy and obtain a Discharge
- Once your Plan is approved by the Bankruptcy Trustee, you will make monthly payments to the Bankruptcy Trustee for a period of time ranging from 3 to 5 years. (Generally, your plan will be for 5 years)
- The grouped debts will each receive a portion of the amounts they are owed, based on the amount you owe and the amount of your monthly payment. (For example, your mortgage company may receive 100% of what they are owed, your auto finance company may receive the "cram-down" amount; and credit cards may receive 40% of what they are owed, and medical bill creditors may receive 60% of what they are owed)
