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How Long Does It Take to Complete a Chapter 13 Bankruptcy Repayment Plan?

Posted By Allmand Law Firm, PLLC || 12-Apr-2013

Completing a Chapter 13 Bankruptcy

On average, a Chapter 13 bankruptcy repayment plan can last anywhere from three to five years. Yet, there are factors to consider in determining how long your case will last since each situation varies. The amount you pay is based on your monthly income, with similar factors determining the amount of time the debtor commits toward making payments. This is known as the commitment period or plan duration. Income qualifications for Chapter 13 are based on state requirements.

Chapter 13 bankruptcy is a repayment plan approved by the court. The plan is designed to help debtors make regular payments toward debt obligations while regaining control of their financial situation. The amount you earn can affect the duration of your plan. Paying off debts early can also reduce the commitment period. Five years is the maximum amount of time a Chapter 13 plan lasts.

The type of debt included in your plan may also affect the length of your case. Most people make payments within the 3 to 5 year range. Some may complete the plan within 3 years depending on their situation. For instance, Chapter 13 is filed to help catch up on mortgage and vehicle payments. If your filing is being used to cure a default, the length of your filing may be longer if your payments are smaller to help you retain property (house or vehicle).

Another factor that can affect the length of your case is if your circumstances change such as long-term or short-term financial problems. This may be a job loss, changes in earned income or other financial hardship. When such changes occur you should report them to your attorney or trustee as soon as possible to consider other arrangements to keep your case in good standing.

Have Any Questions About Chapter 13 Bankruptcy?

If you have any questions about chapter 13 bankruptcy or need some assistance we are here to help you. To set up a free consultation give us a call or fill out our contact form today.
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