Wage Earner Plans Under Bankruptcy Chapter 13

All Chapter 13 cases require a debtor to file a proposed plan for repayment of debts. The plan must include a provision for all disposable income to be paid to a trustee, who in turn, disburses payments to creditors according to a strict priority. As a condition of confirmation (approval) by the court, a Chapter 13 wage earner must prove a source of regular income sufficient to make regular monthly payments. Upon completion of the plan, all remaining debt balances owed are discharged without liability for further payment.