23 May How Long Does a Chapter 13 Case Take?
A Chapter 13 is a court-administered debt repayment plan. In a typical case, a percentage of general unsecured debts are paid (like credit cards) and the unpaid balances are discharged. How long the plan lasts depends on income.
The 2005 BAPCPA bankruptcy amendments created “commitment periods” that vary based on whether a debtor is above or below median income based on family size. When a debtor is below median income, the plan lasts three years. When above median, the plan lasts for five years. Below median income debtors who need more time to complete their plans may extend beyond the three years, but no Chapter 13 case can last beyond five years.
The seven year period for credit reporting of a Chapter 13 starts from the date of filing, regardless of how long the plan lasts.
You can read a bit more about Chapter 13 bankruptcy here.
Nicholas Ortiz, Boston Bankruptcy Attorney
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