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Simple English definitions for legal terms

Chapter 13 plan

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A quick definition of Chapter 13 plan:

Chapter 13 is a part of the law in the United States that helps people with regular income to pay back some or all of their debts. This plan requires the debtor to make payments from their future income over a period of three to five years. The debtor proposes the plan and must file it within 14 days of starting the case. The plan details how much money will be paid to the trustee on a regular basis, usually every two weeks or every month. Unlike Chapter 7, which uses assets to pay creditors, Chapter 13 uses income. The plan allows the debtor to keep their property and pay off long-term debts, like a mortgage. Creditors do not get to vote on the plan, but they may object if it does not follow the law. If the plan fails, the debtor can convert the case to Chapter 7 or seek a hardship discharge. If the debtor does not follow the plan, the court may dismiss the case.

A more thorough explanation:

Chapter 13 is a part of the United States Bankruptcy Code that allows individuals with regular income to create a plan to repay some or all of their debts. This plan requires the debtor to propose a repayment schedule to make installment payments from their future income over a period of three to five years.

For example, if someone has a monthly income that is less than the state median, their plan will be for three years unless the court approves a longer period "for cause." However, if their monthly income is greater than the state median, the plan generally must be for five years. The debtor must file the plan when the case commences or within 14 days afterward.

The repayment plan must detail a schedule of payments of fixed amounts to the trustee on a regular basis, usually biweekly or monthly. Unlike a chapter 7 liquidation, a chapter 13 plan generally uses the debtor’s income rather than assets to pay various creditors. And unlike a liquidation under chapter 7, a chapter 13 plan allows a debtor to retain the collateral for the claims of creditors and pay off long-term debts, such as a mortgage for a home.

For example, if someone has a mortgage for their home and is struggling to make payments, they may file for Chapter 13 bankruptcy and create a repayment plan to pay off their mortgage over a period of three to five years. This allows them to keep their home while also paying off their debt.

If the plan is finalized and confirmed, it will discharge the debtor’s many debts. Depending on the case, the plan may call for full repayment or offer creditors a percentage of their claims.

For example, if someone owes $10,000 to a credit card company, their Chapter 13 plan may offer to pay the company $5,000 over a period of three to five years. This allows the debtor to pay off their debt while also reducing the amount owed to the creditor.

However, the plan may fail to adequately compensate the creditors, either by design or by the debtor’s failure to complete the plan. In that event, the debtor can convert the case into a chapter 7 proceeding or seek a hardship discharge under Section 1328(b). Alternatively, a party with an interest may object to confirm a proposed plan if it does not conform with the Bankruptcy Code’s requirements. Similarly, the court will dismiss the case if the debtor fails to comply with the plan.

Chapter 13 bankruptcy | Chapter 7 bankruptcy

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22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
Dkk
9:49
Lmfao, Gross
Dkk
9:49
@glovediedthisishismom: Watch it at the office!
Dkk
9:50
Proton vpn and https://en.solarmovie-official.lol/
let little glovey go home!
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