Chapter 13 rules are?

Chapter 13 rules are?

• A. Must be paid within 2 years.
• B. Must be paid within 3 years.
• C. Must be paid within 5 years.
• D. Must be paid within 7 years.

Answer: (C)

Chapter 13 plans are a repayment arrangement in bankruptcy, and the duration of that plan is tightly regulated. The rule sets a maximum length of five years for the repayment plan, with many plans running for five years, while some debtors with lower income may complete in three years. The important point is that the plan cannot exceed five years. That’s why the best answer is five years. The option of two years is too short to satisfy the plan requirements, and seven years goes beyond the allowed limit.

Chapter 13 plans are a repayment arrangement in bankruptcy, and the duration of that plan is tightly regulated. The rule sets a maximum length of five years for the repayment plan, with many plans running for five years, while some debtors with lower income may complete in three years. The important point is that the plan cannot exceed five years. That’s why the best answer is five years. The option of two years is too short to satisfy the plan requirements, and seven years goes beyond the allowed limit.