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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 14 days after the petition is filed. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.

In Washington state, as in all states, the bankruptcy process is governed by federal law, specifically the U.S. Bankruptcy Code. When an individual files for bankruptcy under Chapter 13, they must submit a repayment plan either with their petition or within 14 days after the petition is filed, unless the court allows an extension. This plan outlines how the debtor intends to pay off their debts over a period of time, usually three to five years. The debtor makes regular payments to a trustee, who then distributes the funds to creditors. The plan must be approved by the court, and it may propose to repay creditors less than the full amount owed. The trustee oversees the process to ensure that the debtor complies with the plan and that creditors receive their respective shares.

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Bankruptcy

Chapter 13 bankruptcy—repayment plan

Individual & Family Legal Plan

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Washington State Code

Washington State Code

Bankruptcy

Chapter 13 bankruptcy—repayment plan

Articles