Are Chapter 13 Plans Based on the Debtors Income and Assets?
Most Chapter 13 plans provide for only a partial repayment of debt. To be approved by the court, the debtor’s plan must provide for the debtor to pay to the Chapter 13 trustee a sum equal to the debtors disposable income for at least 36 months, after taking into account the debtors regular monthly living expenses. Also, the plan must pay the creditors at least as much as those creditors would receive if the case were in Chapter 7. Thus, the amount that will be repaid to creditors is dependent upon the debtor’s income and assets. The debtor’s plan also needs to be filed in good faith.
