Chapter 13 Bankruptcy
A Ch. 13 Bankruptcy debtor proposes a repayment plan to pay creditors over a period of 3 to 5 years. The Plan is based on debtor’s projected income and expenses. The Plan may pay all or only a portion of the debt owed to creditors. The Court must approve the Plan.
Debtor makes Plan payments to the court appointed Trustee. The Trustee makes disbursements to the creditors from the Plan payments. Generally, debtor does not deal directly with creditors during her case. Debtor receives a Bankruptcy Discharge when she completes the Plan payments.