If you are filing court petition for bankruptcy under chapter 13 bankruptcy code, there are certain rules that you need to be aware of. Knowing these rules will make the bankruptcy proceedings much smoother and you will have cooperatively less hassles and worries during the proceedings in the bankruptcy court. As you know that bankruptcy laws are very complex and the frequent addition of the new bankruptcy laws, make it much more complex. Therefore, the only way to make things easier and smoother for you, you will have to get more and more information regarding the wide range of intricacies involved in the bankruptcy laws. Chapter 13 rules are just a part of the many things that every common man filing bankruptcy must know.
Repayment Plan
The main characteristic of the chapter 13 bankruptcy code is that it allows the debtor to carry on with the specific business they are running while paying off the creditors on a specific repayment plan. Either such plans are suggested by the bankruptcy court or the debtor may also like to offer the same. In usual circumstances, the debtor is asked to make a plan and submit the same to the bankruptcy court for approval. As per the various Chapter 13 rules, the debtor is held responsible to make the repayment plan and submit the same within fifteen days from the day of filing of the court petition for bankruptcy. The debtor has to mention each and every detail in the repayment plan that how the various creditors will be paid off and how much will be paid off. The debtor will also have to specify the terms. For example, if the debtor wants the creditors to reduce the rate of interest, as per the chapter 13 rules, they will have to specify the same in the repayment plan. Before the bankruptcy could give its approval, the consent of the creditors is sought. If the creditors agree with the repayment plan as made by the debtor, the same is instantly approved by the bankruptcy court. As per the chapter 13 rules, the bankruptcy court also appoints a trustee to keep an eye on the business activities of the debtor and if he or she is following the repayment plan properly or not.
One important aspect of the chapter 13 rules is that it is mandatory for the debtor to include all the sources of future income with its full details in the repayment plan. What is more, the priority claims must be provided for in full. The provision for the deferred payment is only for the creditor’s claims with less priority status.