What is the process for approving a Chapter 13 Bankruptcy plan?

In South Carolina, the process for approving a Chapter 13 Bankruptcy plan involves several steps. First, the debtor must submit the Chapter 13 bankruptcy petition. Upon filing the petition, the court will enter an Order of Relief barring creditors from collecting from the debtor until further notice. This will also provide automatic protection and reinstate equity in the debtor’s property. Within 14-15 days of filing, the debtor must also file their repayment plan. This plan must detail how the debtor intends to repay their outstanding debts. The plan must be approved by the court and it should be based on the debtor’s current income and expenses. The plan must also include the security for each debt and the amount to be paid to each creditor. After the repayment plan is submitted, the court will hold a hearing to review the plan. During this hearing, the debtor’s creditors can participate and object to the plan. If the repayment plan is approved, the court will issue an Order of Confirmation. This order binds the debtor to the repayment plan outlined in the plan and requires creditors to abide by it. Once the Order of Confirmation is issued, the debtor must make their payments according to the repayment plan. The payments will be disbursed by the trustee and should be made on time. If the payments are made according to the plan, the debts will be discharged at the end of the repayment period.

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