Is It Legal to Include Past Due Bills in Your Chapter 13 Plan?

Is It Legal to Include Past Due Bills in Your Chapter 13 Plan? Many people review old debts during financial stress. Consumer trends show rising plan filings.

Is It Legal to Include Past Due Bills in Your Chapter 13 Plan? is, in fact, allowed for eligible debts. This approach treats arrears as part of repayment under court supervision. Courts generally classify these amounts as regular plan obligations.

How Filing Works with Arrears Plans spread past due amounts across several years. Payments combine current charges and long overdue balances. Research shows structured plans reduce collection pressure.

Why Filers Choose This Path Secured and unsecured past due bills can be included. Creditors receive partial recovery through the confirmed schedule. This method keeps automatic stay protections active.

Can medical bills be treated this way? Yes, courts usually allow medical debt in the plan.

Will this stop wage garnishment? Yes, filing triggers automatic stay, halting most collection actions.