ABA Family Legal Guide

Consumer Bankruptcy

Chapter 13: Wager-Earner or Individuals with Regular Income Bankruptcy

Payment Plans

What happens after the plan is approved?

Once the court approves your payment plan, you must continue to make regular monthly plan payments to the trustee. The trustee usually distributes payments among your creditors in accordance with your confirmed repayment plan. You will continue to pay for your ongoing utility and grocery bills and other everyday expenses. The court will grant you a Chapter 13 discharge after you complete the payments specified in your plan, usually in three to five years. If you are unable to complete the payments, you will not obtain a discharge of any of your debts unless you qualify for a hardship discharge, which requires proof of special circumstances beyond your control that made it impossible for you to make further plan payments (see below).