Chapter 13 bankruptcy may want to know how much they are required to pay during the plan. Understanding
what you will be required to pay will depend on several factors. Your
monthly income, type of debt, and ability to make payments will have an
effect on what you will pay. There are certain debts that may be required
to be paid, with others being discharged at the end of the plan if they
qualify. The bankruptcy court sets guidelines for debtors to follow when
determining repayment plans for debtors.
Debt in the plan gets divided into categories including priority debt,
secured debt, and unsecured debt.
Priority debts are required to be paid in full through the repayment plan
and may include debts such as child support, spousal support and income
taxes. Any payments you fell behind on (also known as arrears) would be
paid as required.
Secured debts will also be required to be paid, but as with priority debts,
you will make payments toward obligations in default or anything with
property you want to keep. If you are behind on a loan, such as your mortgage
or vehicle and want to keep the property, you can catch up on payments
to get the loan current.
Unsecured debts may or may not be paid depending on what you will be required
to pay toward priority and secured debts. You may pay some or nothing
toward unsecured obligations and at the end of the repayment plan, they
may get discharged.