How long does a chapter 13 plan last?
The required length of a Chapter 13 plan depends on the debtor’s income. If the debtor’s annual income is less that the median family income for the debtor’s state and family size, the length of the plan must be three (3) years, unless the debtor can justify a longer period, which may not exceed five (5) years. If the debtor’s annual income exceeds the median family income, the length of the plan must be five (5) years unless all unsecured claims can be paid off in a shorter period.
ANSWER – The required length of a chapter 13 plan depends on the debtors income. If the debtors annual income is less than the median family income for the debtors state and family size, the length of the plan must be 3 years, unless the debtor can justify a longer period, which may not exceed 5 years. If the debtors annual income exceeds the median family income, the length of the plan must be 5 years unless all unsecured claims can be paid off in a shorter period. The debtors annual income is his or her current monthly income multiplied by 12.
A Chapter 13 plan must last for three years unless all debts can be paid off in full in less time. However, a Chapter 13 plan can last for as long as five years if necessary. At your initial consultation, I will estimate what a Chapter 13 Plan payment might be for you based on your disposable income and the amount of your debt. Those factors are the main determinate of the length of a Plan. How much of your income must be paid to the Chapter 13 trustee under a Chapter 13 plan? The recent law change requires that we use a very complex formula to determine “disposable income,” which is the portion of your income that must be paid into the Plan. Do all creditors have to approve a Chapter 13 plan? Your Chapter 13 plan is approved by the court, not by your creditors. However, secured creditors are permitted to ask the court to lift the automatic stay that keeps them from taking any action against you during the bankruptcy. The court will hold a hearing in such a situation. If the court lift
