What is the Chapter 13 Bankruptcy repayment plan?

In Virginia, Chapter 13 Bankruptcy repayment plans are designed to give those who are in extreme financial distress an opportunity to reduce or prevent the loss of their possessions in order to repay their debt. This type of bankruptcy allows debtors to create an individual plan to pay back their creditors over three to five years depending on their income and financial situation. The repayment plan typically requires that debtors make a certain payment every month to their creditors. This payment is most often calculated based on the amount of debt the debtor has and the amount of money they have available to pay. The repayment plan must be approved by the court and the creditors must agree to it in order for it to be valid. The repayment plan will include details such as the amount of the monthly payments, the frequency of the payments, and how long the repayment plan will last. Additionally, debtors must ensure that they remain current on payments at all times and must keep up with any other obligations they have such as tax payments or child support. Once the repayment plan is complete, the debtor may be able to get some of their debt discharged or have the remaining debt forgiven.

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What is the Chapter 13 Bankruptcy repayment plan?

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