Filing a 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 three to five years. Generally, your plan will be for five 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 percent of what they are owed, your auto finance company may receive the "cram-down" amount, credit cards creditors may receive 40 percent of what they are owed and medical bill creditors may receive 60 percent of what they are owed.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.