No. In general, creditors will receive a fraction of what they are owed through the payment plan. The payment plan does require that an individual uses all of their disposable income to repay debts over a three to five year period, but once all plan payments are made, debts are discharged regardless of whether or not each debt is paid in full.
Denver Bankruptcy FAQ:
Chapter 13 Bankruptcy
Chapter 13 bankruptcy law
Denver Chapter 13 Bankruptcy Attorney
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A trustee is a court appointed individuals who oversees Chapter 13 payment plan payments and the dispersal of funds to creditors following recieving bankruptcy plan payments.
A Chapter 13 repayment plan is a court approved plan which is created by the individual filing for bankruptcy that outlines income, debts, and a plan to repay debts over a three to five year period. The payment plan is administered by the Chapter 13 trustee and is designed to allow the debtor to keep enough of their income to cover necessary living expenses and distribute all disposable income amongst creditors.
Although Chapter 13’s cannot protect all of an individual’s property from collection, in general, individuals who file Chapter 13 bankruptcies are able to keep the majority if not all of their possessions.
