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Debtors may file full or partial plans. In a full plan, all debts are
repaid in full, with interest. In a partial plan, the term may last only
so long as required to repay debts, and thereafter the case is closed.
The effect of variations in the length of plans has little impact on the
overall effect of filing when applying for future loans, credit, and
insurance premiums.
Debtors may also file partial plans that provide for less than full
repayment. In a partial plan, the debtor pays all disposable income into
the plan for a period of 3 to 5 years. At the end of the plan, Chapter
13 bankruptcy loan discharge is available for all remaining balances. A
Chapter 13 discharge wipes out liability for future payments on unpaid
portions of debts. The amount of the minimum monthly payment in partial
plans was contribute of a debtor's disposable income for the benefit of
creditors.
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