Chapter 13

Chapter 13 Bankruptcy Repayment Plan Explained

Chapter 13 payments are aimed at providing unsecured creditors with a repayment plan. Lenders are required to pay as much as they can afford on a monthly basis for however long the plan is set out for. You can also pay your debt in full, or whichever is the lesser amount. All payments to unsecured creditors are 0% interest and there are no late charges or hidden fees. Unsecured creditors should be paid at least what they would have received if you had filed a Chapter 7. An experienced bankruptcy attorney can help you determine the payment amount and the length of time that you will be required to pay over. You can propose a payment plan or let your attorney help you with the nitty-gritty.

Chapter 13Chapter 13Chapter 13Chapter 13
Chapter 13 

Bankruptcy Repayment for Chapter 13 Discharge and A Repayment Plan

Typically, with this type of bankruptcy repayment, you will be paying back all of your debts, including unsecured nonpriority claims, in a shorter period. Your repayment plan will have to be at least three years long, but it may not exceed five years. Whether you propose three years or five years will depend on whether your average income for six months preceding your Chapter 13 discharge is above or below your median income. If your income is lower than the media, your plan will last anywhere between 36 – 60 months. It’s important to note that a 60-month plan can reduce your monthly repayments by stretching them over a longer period of time.

You can figure out your minimum monthly payments by:

  • Priority debts for your bankruptcy payment
  • Mortgage arrears as part of your repayment plan
  • Car loans as part of Chapter 13 discharge
  • Various secured debts you want to pay off through your plan
  • Administrative fees and interest charges
  • Regular monthly payments on loans
  • Disposable income can render the payment plan higher
  • Nonexempt property can make your payment plan higher
  • The amount of unsecured debt accrued
  • Various options if you are unable to make a payment plan

More About the Chapter 13 Repayment Plan

Just how much will you have to pay on your Chapter 13 repayment plan? Some creditors may receive 100% of what you owe them, and others may be given a far smaller percentage or even nothing at all. Typically, this type of bankruptcy payment provides that administrators, including filing fees, trustee’s commission, and attorney’s fees will be paid at 100%. Priority debt discharge will be paid at 100%, including child support, tax debts, wages, salaries, and contributions owed to an employee fund. Mortgage defaults and various secured debt defaults will be settled at 100%, whereas unsecured debts can be paid anywhere from 0 – 100%.

Talk to an Attorney About Chapter 13 Bankruptcy Payment

Our attorneys will help you choose the best plan for your situation.

Call for a Free Initial
Consultation
Contact our office today to discuss your bankruptcy or family law questions. You can reach us by toll free phone at 888-773-714 or via e-mail. We will respond promptly to all phone calls and emails, within 24 hours.
Or you can just use the contact form below.

Testimonials

I have dealt with Matt for a few years for a couple of matters for myself and for my mother-in-law. Matt has always been a man of his word; anything he said he would do was done as expected. He provided timely and accurate advice when requested. Matt never pushed services that were not required and at certain times he recommended less costly services that would achieve the same results. I highly recommend him as very honest and ethical. He always disclosed fees in advance and there were never any "surprise" fees.— jimcar13
Mr Nahrgang was easy to work with, and did an excellent job with my case. Though my case turned out to be more complex than we had originally realized, he handled every complication promptly and competently.— eyedoc89
I was first recommended to Matthew Nahrgang by a friend. I was having serious financial issues at the time. I went to Matt and had a conversation which set my mind at ease. He is straight to the point, honest and tells you how it is. No frills kind of guy. He also is confident in his business and knows the law very well, which is what set me at ease. It was not near a big deal as I thought it to be. He does what he says he is going to do and does it in a timely manner. I have used Matt a few times now and I've recommend him to many of my friends and business acquaintances. I highly recommend Matthew Nahrgang!— my1leelee
In relation to my bankruptcy and in retrospect, I was thankful that I had discovered Mr. Nahrgang and had engaged him to respresent me in my case. I found him to be respectful, understanding, highly knowledgeable and trustworthy. I appreciate all that he did on my behalf and have recommended him to friends and family.— Orangefit09
Areas we serve
The Collegeville, Pennsylvania based law firm of Nahrgang & Associates, P.C. represents clients in the counties of Montgomery, Bucks, Delaware, Chester, Berks, Philadelphia, Lancaster, Northampton and Lehigh including the communities of Collegeville, Jenkintown, Doylestown, West Chester, Reading, Media, Allentown, Norristown, Phoenixville, Quakertown, Pottstown, Lansdale, Royersford, Plymouth Meeting, Exton, Conshohocken and King of Prussia, PA.
Our location
Nahrgang & Associates, P.C
35 Evansburg Road, Suite 3 Collegeville, PA 19426
Phone: 610-422-3651
Toll Free: 888-773-6714
Fax: 610-489-3042