If you are struggling with debt, despite having a regular income, you are not alone. Like others in Ohio who find themselves in this situation, you may consider options such as filing for Chapter 13 bankruptcy. The core of Chapter 13 cases, it is important that you understand the repayment plan requirements before filing.

According to the U.S. Bankruptcy Court for the Southern District of Ohio, you must submit your Chapter 13 repayment plan with your petition or within seven days of your filing. Unless you have received permission from the court due to exceptional circumstances, your plan must be completed in accordance with the mandatory form plan for the locality in which you are filing.

The Chapter 13 repayment plan specifies a schedule for paying down your unsecured debts. Your completed plan should provide an estimated duration, typically three or five years. Repayment plans should specify the amount of the payments that you will regularly make to your bankruptcy trustee, as well as indicate the percentages of those payments to be forwarded on to each of your unsecured creditors.

In addition to setting forth the terms of your debt repayment, Chapter 13 plans also provide stipulations for the handling of your personal property loans, leases and executory contracts. While you are permitted to make most lease and loan payments not provided for in your plan on your own, the bankruptcy trustee assigned to your case must make the lease or loan payments for any motor vehicles you own. Unless the court orders an alternative arrangement, the trustee will also take over the disbursement of your mortgage payments during your plan if you were in arrears at the time of your filing.

The information contained in this post is not meant as legal advice. Rather, it should be considered only for general purposes.