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How long is a chapter 13 bankruptcy repayment plan?

If you are exploring the option of filing for chapter 13 bankruptcy in Washington, D.C., then you likely already know that you will have to put together a plan to repay your debts. When you file your petition, you will have to present information including the following:

  •        A schedule of your assets and debts
  •        Information regarding your income and expenses
  •        Proof that you took a credit counseling class

According to the U.S. Courts, you typically have 14 days following your bankruptcy filing to submit your repayment plan. That plan will have to detail how you can pay back your debts over a set time period, making payments every month. That time period must be between three and five years unless you can pay off all debts in a shorter timeframe.

The exact length of time a repayment plan lasts is based on your income and the median income in Washington, D.C. If your median income falls below the median, your plan could be anywhere in that three-to-five-year period. If your plan is on the longer end, your monthly payments will be more affordable, though many people choose to propose a shorter plan.

If your income falls above the median income in Washington, D.C., you will likely have to be in a five-year plan. However, courts may be flexible with this option depending on your circumstances, including if you do not have any disposable income. You are the one who can put together your plan, and experts advise working with a professional to ensure you abide by the law and formulate a strategy that is in your best interests.

While this information may be useful, it should not be taken as legal advice.

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