How to Write Up a Chapter 13 Plan

A Chapter 13 plan explains how creditors will be paid.

A Chapter 13 plan is the outline in which the debtor explains to the court and the trustee how their creditors will be repaid. The requirements of the plan are presented in the local rules for each district, as well as the U.S. Bankruptcy Code. The plan is broken into sections for each class of creditor, such as priority claims, secured claims and unsecured claims. The debtor is required to provide for all creditors that have allowed claims. The plan also notes any property that will be surrendered through the bankruptcy.

Things You'll Need

• Local rules of bankruptcy
• U.S. Bankruptcy Code
• Creditor and debt information

Instructions

1. Review the U.S. Bankruptcy Code to determine the requirements of a Chapter 13 plan. The plan must provide for all priority claims, explain how secured property will be handled and what percentage of unsecured debt will be repaid. A priority claim is one that is not dischargeable and must be paid in the plan. It also specifies what the debtor’s plan payment will be and the length of the plan.

2. Review the local rules of bankruptcy procedure for the district in which the case is filed. The local rules explain the bankruptcy judge’s policies on how to format documents, what to include in the filing and who should receive notice.

3. Review Proofs of Claims to determine the amount owed to each creditor. When you file your first plan, you will likely be estimating these numbers. However, once the creditors file Proofs of Claims, you should use their numbers, unless you believe them to be inaccurate. If they are inaccurate, you must object to the Proofs of Claim.

4. Draft the Chapter 13 plan. Using the information from the Proofs of Claims and the outlines provided by the local rules, you will draft the plan. Include a section for priority claims and explain how they will be paid. For secured claims, you will include the interest rate being paid, the total amount of the claim, and the value of the property, if you are only repaying what it is worth. You will not list unsecured debts, only a notation about the percentage paid to unsecured creditors. Once you have the plan complete, you must include a certificate of service that attests to the fact that you sent copies of the plan to all interested parties.

5. File the Chapter 13 plan. You may file the document by mail or in person at the bankruptcy clerk’s office in the district where the case originally was filed. Most districts have a scanner in the lobby of the bankruptcy clerk’s office where you may scan documents for filing. Make copies of the complete document and mail copies to all creditors and interested parties in accordance with the certificate of service.

References

• Cornell University Law School: 11 U.S.C § 1322. Contents of Plan