• Chapter 13 of the U.S. Bankruptcy Code provides for a payment plan.cash image by Alexey Klementiev from Fotolia.com
  
  The U.S. Bankruptcy Code establishes two types of procedures for consumers: Chapter 7 and Chapter 13 bankruptcies. A Chapter 7 bankruptcy results in a permanent discharge of your debts. A Chapter 13 bankruptcy develops a payment plan through which you pay off a portion or all of your obligations to creditors.
  
  

Qualifications

• Pursuing a Chapter 13 bankruptcy requires a demonstration that you possess the financial ability to satisfy the bulk of your obligations to creditors if the court intercedes and assists you with the development of a repayment plan. The court initially analyzes the amount of disposable income you have available to satisfy these debts through a court repayment plan. Disposable income represents money available to you after deduction of taxes and a calculation of necessary expenditures (excluding payments to creditors).
  
  

Chapter 13 Plan

• The heart of Chapter 13 of the U.S. Bankruptcy Code is the development of a "Plan." The Chapter 13 Plan sets forth the amount of money you intend to pay into the bankruptcy court each month. The Plan determines how this monthly payment is distributed amongst all of your creditors that qualify for including in the scheme. Finally, the Plan establishes the time frame for completion of the process of paying off your creditors. The Plan runs somewhere between two to five years.
  
  

Bankruptcy Trustee

• The provisions of Chapter 13 of the U.S. Bankruptcy Code call for the assignment of a bankruptcy trustee to your case. The trustee is an official of the bankruptcy court assigned to oversee your case on a day to day basis. The trustee assists in developing and approving the payment plan and coordinates the receipt and disbursement of your payments into court each month.
  
  

Legal Assistance

• The provisions of Chapter 13 of the U.S. Bankruptcy Code represent complex legal procedures and mandates. Your interests may best be served if you retain an experienced attorney to represent you in this type of legal proceeding. State and local bar associations maintain public directories that list lawyers in different practice areas, including bankruptcy law. Contact information for these organizations is available through the American Bar Association:
  
  American Bar Association
  321 N. Clark St.
  Chicago, IL 60654-7598
  312-988-5000
  abanet.org