Chapter 13 Plan
In a Chapter 13 case, the debtor proposes a payment plan to the court that provides for payment of the debts, including credit card debt, personal loans, car payments, mortgage payments, tax debt, and other debt. The plan typically proposes the repayment of any mortgage, car loan, or support arrearages. In addition, the typical plan proposes the repayment of at least part of any unsecured debt, such as credit cards and personal loans. The amounts to be paid are determined by a variety of factors, including the types of debts, the debtor's income and expenses, and the value of the debtor's non-exempt assets.
If the plan is approved by the court, the debtor is protected from the creditors while being allowed to repay the debt through the plan over a period of three to five years.
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