Once a debtor has filed for Chapter 13 bankruptcy in Washington D.C., he or she will be required to make payments to the trustee who is presiding over the case. The trustee will then distribute the funds according to the priority of the creditors. According to U.S. Courts, there are three types of claims: priority, secured and unsecured. Priority claims involve debts that are deemed most important by the court, and may include bankruptcy fees and taxes. Secured claims include debt that must be paid on items that could otherwise be repossessed by the creditor, such as vehicles or homes. Finally, unsecured claims involve debts in which the creditor does not have the ability to reclaim property.
Debtors have a few options when it comes to making their payments. They can send a payment directly to the trustee, or have the payments deducted from their paychecks. It is crucial that people make their bankruptcy payments o time or they may have their case dismissed. This means that the person who filed for bankruptcy will once again face the debts that they had prior to filing for Chapter 13. In some cases, the court may convert the Chapter 13 case to a Chapter 7, or liquidation bankruptcy. If this should occur, the debtor could have some of the property repossessed by the court’s trustee. The trustee will then sell the property, and distribute the funds to the creditors in order to repay the debt.