Does a debtor lose any property in a Chapter 13 case?
Usually not. Under Chapter 13, debts are normally paid out of the payments made to the Chapter 13 Trustee, and not out of the debtor’s property. If the debtor has considerable nonexempt property, however, and cannot make sufficient payments to pay enough of debts to satisfy the Court, some of the debtor’s property may have to be used to pay creditors. Also, if a secured creditor is not being paid under the Plan, the secured creditor may be permitted to repossess the property securing the claim if the debt owed is not paid.
