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If the party asserting a claim files for bankruptcy relief, any settlement agreement will be subject to approval by a bankruptcy judge, who will determine if such settlement is fair to such debtor's estate and creditors.
Chapter 13 cases can be filed for no money down because the attorney fees and court costs can be rolled into a 3-5 year repayment plan. While you're at it, you can also wipe away all of your other unsecured debt (credit cards, medical bills, payday loans, old collections, etc.).
The person filing for bankruptcy is the one who pays for the bankruptcy, either the individual or the creditor in a forced bankruptcy.
The Minimum Percentage of Debt Repayments In A Chapter 13 Bankruptcy Is 8 To 10 Percent.
Disposable Income and Chapter 13 If you are filing for Chapter 13, the answer is no, not for the duration of the process. The court will calculate your necessary expenses (food, utilities, etc.) and that will be the amount of money you retain once your payment plan obligations are met.
Funds received after the date of an Order of Dismissal or an Order of Conversion in a confirmed case and after the Trustee has closed the case will be disbursed directly to the debtor(s). These refunds will be generated once per month, near the end of the month, prior to the regular disbursement cycle.