How Do Your Chapter 13 Bankruptcy Payments Get Determined?
In every Chapter 13 bankruptcy, the debtor (the person filing bankruptcy) makes what are called "Plan Payments" to the trustee, an official assigned to your bankruptcy case by the court to oversee the administration of your case. The debtor creates a "Plan" that shows all creditors exactly how much, if anything, the debtor is going to pay each of his debtors. Once the "Plan" is approved by the court, it becomes the roadmap that the trustee uses to pay the creditors. How much these payments are is unique to each debtor and to the debtor's financial situation and their goals for Chapter 13 Bankruptcy.
This article will discuss the major components that are used to determine a plan payment in Chapter 13 Bankruptcy. You will learn how long the payments will have to be made and which debts are required to be paid 100%. Also, you will learn that there are other debts that are paid only an amount that the debtor can afford to pay.