Example: Chapter 13 Plan



In re: Don & Donna Debtor Case No. 00-5001


Chapter  13 Plan

1. The future earnings of the debtor(s) are submitted to the supervision and control of the trustee, and the debtor(s)
shall pay to the trustee the sum of $ 450 for 36 months or until all allowed claims are paid.

Debtor(s) elect a voluntary wage order: Yes No

2. From the payments so received, the trustee shall make disbursements as follows:

(a) To the expenses of administration required by 11 USC §507 (a)(1) in deferred payments.

(b) To secured creditors whose claims are allowed as follows:

Name Value of   Collateral Monthly Payment Interest Rate
GMAC $7500 5%

[The valuations shown above shall be binding unless a timely objection to confirmation is filed. Secured claims shall be allowed for the value of the collateral or the amount of the claim, whichever is less, and shall be paid in the monthly installments and at the interest rates shown above. If the monthly payment is not fixed, secured creditors will share pro rata. If an interest rate is not specified, 5/6% per month (10%per annum) will be paid. Secured creditors shall retain their liens until their allowed secured claims have been paid. The remainder of the amount owing, if any, shall be allowed as a general unsecured claim paid under the provisions of paragraph 2(d).]

(c) To priority creditors in the order prescribed by 11 USC §507.

(d) To unsecured creditors whose claims are allowed. Unsecured claims shall be paid 20 cents on the dollar.

3. The following executory contracts of the debtor are rejected and the debtor shall surrender possession of the subject property. Any allowed unsecured claim for damages resulting from rejection shall be paid under paragraph 2(d).

Car Leasing Co.

4. The debtor(s) shall pay directly the following fully secured creditors and lessors:


Direct Monthly Payment

Home Mortgage Lender       $1100

5. The date this case was filed shall be the effective date of the plan as well as the date when interest ceases accruing on unsecured claims.

6. The Court may, after hearing upon such notice as the Court may designate, increase or reduce the amount or the time for payments where it appears that circumstances so warrant.

7. Optional provisions pursuant to 11 USC § 1322 (b):

Don Debtor

Donna Debtor
DATED:    2/21/00 (DEBTORS)

About the Author
Northern California bankruptcy lawyer Cathy is a 30+ year veteran of bankruptcy practice in the Silicon Valley. She is known for energetic representation of clients and her command of bankruptcy law.