My spouse and I are going to file a chapter 13 and due to our income level will have to do the 5 year payment plan. We have been told we hav...

Question

My spouse and I are going to file a chapter 13 and due to our income level will have to do the 5 year payment plan. We have been told we have to repay the entire debt within those 5 years even though that will leave us with nothing left to live on. Is this correct? Will we be required to repay the entire debt within 5 years?

Answer

Not necessarily. It depends on what type of debt you are talking about. For example, most taxes and domestic support obligations need to be paid entirely in a Chapter 13. Unsecured creditors do not necessary need to be fully repaid in a Chapter 13 plan. I would not recommend filing a Chapter 13 without an attorney. Consult counsel of your choosing about this.

Nathan Hansen

651-704-9600