The repayment plan has to be in place before you fill up the Chapter 13 bankruptcy papers as everything hinges upon this repayment plan. It will say the amount of money that will be paying back and how you will utilize the money to pay your debts. There are a few debts like child support, wages to employees, alimony and so on that is referred to as priority debts and is needed to be paid back in full. Also, your mortgages and car and other loans will also be included in the repayment as well as the amount that you have already paid to these debtors. The unsecured debts like credit card bills or medical bills need not be paid back in full or sometimes need not be paid in full depending on the financial situations.
The duration of your repayment plan will depend on the amount you need to repay and your financial earnings. If your income for the past six months before filing the chapter 13 papers is over state’s median income, then you will be going for a five year plan. A three year plan will be proposed if your income is below the approved median income level. If you are current on child support and alimony, then your remaining debt will be discarded off only if you have completed your repayment plan.