In Chapter 13 bankruptcy cases, people must submit a proposed repayment plan to pay back their creditors any debt they owe.  Once this planned is agreed upon by consumers and creditors, the consumers will have a period of 3 to 5 years to repay their debt.

According to 11 U.S.C. § 1327, after the provisions of the confirmed repayment plan are agreed upon, the person that is in debt (debtor) and the creditor are bound to that agreement.  And, after the plan has been approved of by a U.S. Bankruptcy Court, the debtor must adhere to the terms of it.

Throughout the next 3 to 5 years, the debtor will submit his or her payments to a trustee.  Payments can be made directly or with scheduled payroll deductions.  All payments are then turned over to the debtor's creditors until balances are 100% paid off.

If you have questions about Chapter 13 bankruptcy in Houston, it is a wise idea to speak with a Houston bankruptcy lawyer as soon as possible. Contact the Malaise Law Firm to get your questions answered today!