Legal Question in Bankruptcy in Illinois

In chapter 13 bankrupcty, are owed amounts ever reduced and then a repayment plan put in place, or are the repayment plans based on exact amount owed?


Asked on 6/06/12, 12:08 pm

1 Answer from Attorneys
Roseanne Lynch Bankruptcy Counselors, Ltd

The amount you pay into a Chapter 13 is determined by several factors including the Means Test. In the Northern District of Illinois, the minimum is 10% or 10 cents on the dollar. So although the owed amount is not reduced, the amount the Debtor pays back is based on the Debtor's financial condition and can be as little as 10% of that amount. The Debtor is discharged on the balance after making payments for a maximum of 60 months (5 years).

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Answered on 6/06/12, 12:15 pm


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