Part 1: Important Notes
This sample shows how a Chapter 13 plan may organize debt repayment over time. Actual plans vary by district, income, asset protection needs, mortgage status, vehicle treatment, attorney strategy, and local court rules.
- Judicial lien avoidance: Not included
- Nonstandard provisions: Not included
- Secured claim modification: Included for one vehicle loan in this example
Part 2: Plan Payments
Regular payment to trustee: $850 per month for 60 months
Total estimated plan base: $51,000
Tax refunds: Debtor retains normal tax refunds unless otherwise required by trustee
Part 3: Treatment of Secured Claims
3.1 Mortgage Arrears
| Creditor | Collateral | Current Payment | Arrears | Interest on Arrears | Monthly Cure Payment |
|---|
| ABC Mortgage Co. | Primary Residence | $1,950 direct | $8,400 | 0% | $140 |
3.2 Vehicle Loan Cramdown Example
| Creditor | Collateral | Total Claim | Vehicle Value | Secured Claim | Interest Rate | Monthly Plan Payment |
|---|
| DriveFast Auto Finance | 2018 Honda Accord | $19,500 | $12,000 | $12,000 | 6.5% | $235 |
3.5 Surrendered Property
Creditor: StoreCard Furniture Finance
Collateral to be surrendered: Living room furniture set
Part 4: Fees and Priority Claims
| Item | Estimated Amount |
|---|
| Trustee Fee | Approx. 8% of plan payments |
| Attorney Fees Remaining Through Plan | $3,200 |
| Priority IRS Debt | $2,400 |
Part 5: Nonpriority Unsecured Claims
Total general unsecured debt: $46,000
Estimated dividend to unsecured creditors: 18%
Estimated amount paid to unsecured creditors through the plan: $8,280
Part 6: Executory Contracts and Leases
Assumed lease: None
Rejected leases/contracts: All others not specifically assumed
Part 7: Vesting of Property
Property of the estate will vest in the debtor upon discharge.
Estimated Payment Breakdown
| Category | Estimated Total |
|---|
| Mortgage arrears cure | $8,400 |
| Vehicle secured claim | $14,100 |
| Attorney fees | $3,200 |
| Priority tax debt | $2,400 |
| General unsecured creditors | $8,280 |
| Estimated trustee compensation | $4,080 |
| Estimated Total Plan Payments | $40,460 |
Reader-Friendly Summary
In this example, the debtor pays $850 per month for 60 months. That money is used to catch up on mortgage arrears, pay attorney fees and priority tax debt, pay a reduced secured value on a car, and give unsecured creditors a partial repayment.
At the end of the plan, any remaining dischargeable unsecured debt would typically be wiped out, assuming the debtor successfully completes the case and receives a discharge.
Signatures
Pat Lawyer, Attorney for Debtor
Disclaimer: This is a simplified educational illustration for a blog post. Real Chapter 13 plans vary by court, trustee, district rules, secured debt treatment, and the debtor’s finances.
Yes
No