Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

What should I expect during the Chapter 13 repayment period?

After our last few blog posts about Chapter 13 bankruptcy, we realize that some Wayne County readers may still have a few basic questions left unanswered. You know what Chapter 13 offers and you know about how your debts will be grouped and prioritized. But do you really know what to expect the first morning you wake up with your new repayment plan in effect? After all, this is your life we're talking about, and you deserve to have a clear picture of what the next few years will be like.

Let's try to answer your question with some general information from the United States Courts website, and note in advance that this should not be construed as specific legal advice. Let's say your proposed repayment plan has been approved by the court. Your payments need to begin "as soon as is practicable" -- there's no grace period or window within which to work up to those payments. This is something to which you and your attorney would have given careful thought as you drafted the repayment plan.

It's not necessarily going to be business as usual under Chapter 13. You will have to adjust to living on a fixed budget. The trustee will accept your payments via payroll deduction, if you wish to set it up that way. You'll have manageable payments under Chapter 13, true, but you won't be able to take on any additional debt unless you can get the trustee to approve it.

This may sound intimidating to some readers. What happens if you suffer serious injury or contract a debilitating disease? The law does allow for a hardship discharge in limited circumstances, although it's typically not as broad as you would receive if you completed the repayment plan.

Readers who are still considering this option may wish to follow up with a legal professional regarding their specific questions. It's important to give full consideration to the benefits as well as the potential challenges of Chapter 13 before making a decision.

Source: United States Courts, "Individual Debt Adjustment," accessed on Sept. 26, 2014

No Comments

Leave a comment
Comment Information
  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy