How long will I need to make chapter 13 bankruptcy payments?

The amount of time that you will be required to make bankruptcy payments largely depends on you and your repayment plan.

Chapter 13 debtors are given the opportunity to develop their own payment programs. They do this by listing all of their outstanding debts and assessing the amount of income that they have available on a monthly basis. Then, they make a detailed plan that outlines how their individual creditors will be paid.

Generally, a Chapter 13 plan can span three years. There are some cases where the plan may be extended to an absolute maximum of five years. This means that you may make payments for this entire period if your plan is designed that way. However, you may not need several years. If that is the case, then you can develop your plan according to a much shorter time frame.

It is important to remember, however, that your plan will be reviewed by the Court and by your creditors. It will only be accepted if it appears to be feasible. This means that you should not, for example, outline a plan that involves you using 95% of your monthly income for bankruptcy payments because it will likely be deemed unacceptable.

For more thorough answers about payments and developing a repayment plan, you should contact an experienced bankruptcy attorney.