Your mortgage holder is forced to accept your repayment Plan as long as you make your monthly mortgage payments and plan payments on time and do the other things required by bankruptcy law.

You may be able to reduce the interest charged on your arrearage (overdue payments), saving you substantial money.

You may be able to cancel some or all of your unsecured debt, thereby freeing up money for you to use to get caught up on your mortgage.

You may be able to cancel a second mortgage if the value of your home is less than the amount of your first mortgage.

You may be able to reduce the amount you have to pay back on your car loan if your loan is more than 2½ years old.

You cannot file if you had a bankruptcy case dismissed during the last 180 days (about 6 months) for willful failure to obey court orders or to prosecute the case.  §109(g)

You cannot file if you asked for a bankruptcy case to be dismissed during the last 180 days (about 6 months) and a creditor had filed a motion for relief from stay.  §109(g)

You cannot file if you have more than $1,010,650 in secured debt or $336,900 in unsecured debt.  If your debt exceeds these amounts, you may consider filing a Chapter 11 Bankruptcy, which also involves a repayment plan but which is much more expensive and difficult than Chapter 13.  §109(e)

You cannot file a Chapter 7 Bankruptcy, but must file Chapter 13 if your income is too high to meet the new Means Test put into place by the 2005 Bankruptcy Act.  Under the test, you would have to file Chapter 13 if your annual household income is above the Connecticut median ($95,183 for a household of 4;  $53,553 for a household of 1).

You received a discharge* during the last 4 years in a Chapter 7 Bankruptcy.  §1328(f)

You received a discharge* during the last 2 years in a Chapter 13 Bankruptcy.  §1328(f)

Provide that all or as much of your future earnings as necessary will be turned over to the Trustee to make the Plan payments.

Pay your priority debts in full.  The most common of these debts are:  §507

	Domestic support obligations (alimony and child support).
	The Trustee's administrative expenses (usually 10% of the Plan payments).
	Ordinary expenses from running a business after filing the bankruptcy case.
	Wages and sales commissions up to $10,000 and employee benefit plan contributions up to $10,000 due any employees for the 180 days before filing the bankruptcy case.
	Rental security deposits from tenants up to $1,800 each.
	The following income taxes: Payable for any return due during the 3 years before filing the bankruptcy case. Assessed within 240 days before the bankruptcy case was filed. Assessable after the bankruptcy case was filed.
	Property taxes payable within one year before the bankruptcy case was filed.
	Any taxes withheld from employees or sales taxes collected in running a business.
	Claims for personal injury or death caused while driving while intoxicated.

Get caught up on any arrearages (overdue amounts) on mortgages, car loans and other secured debts.

Pay any taxes that become due during the plan.

Optionally divide any secured debts into two parts, a secured part equal to the value of the collateral securing the debt (house, car, etc.) and an unsecured part equal to the rest of the debt.

	A motion must be filed with the court to determine the value of the property.  §506
	The loan gets split into 2 parts, the secured part is equal to the value of the property and the rest is treated as unsecured debt.  If the Plan pays unsecured creditors less than 100%, then the unsecured part of the loan is paid the same percentage amount as the other unsecured debt.
	This cramdown cannot be done for:  §1322(b)(2);  §1325(a) A mortgage that is secured only by a home.  (Congress is considering changing this). A car loan taken out less than 2½ years before the bankruptcy case was filed. A loan to purchase an item (other than a car)  taken out less than 1 year before the bankruptcy case was filed.

You must be up to date with your Plan payments, which you would have started making one month after you filed bankruptcy.

You must be up to date with your payments to any secured creditors, including your mortgage holder.

You filed your bankruptcy petition and your Plan good faith.

Your Plan must arrange to pay your unsecured creditors at least as much as they would get if you filed a Chapter 7 Bankruptcy.

One of the following is true as to each of your secured creditors whose claims have been allowed:

	They have accepted the Plan.
	They will keep their lien until their debt is fully paid or until your discharge enters and they will be paid the allowed amount of the part of their claim that is secured.
	You have given them the collateral (real estate, car, furniture, etc.) that secures their claim.

It is reasonably probably that you will be able to make all your Plan payments.

You are up to date in any payments you are making on a domestic support obligation (child support or alimony).

You have filed all of your federal, state and local tax returns.

If the trustee or an unsecured creditor objects to confirmation, your Plan proposes to pay all your unsecured creditors in full or to pay them as much of your disposable income (your after-tax income less the total of payments on secured debt, case administration and Trustee fee payments, payments on priority debts, reasonable living expenses, reasonable business operation expenses, and charitable contributions up to 15% of your gross income).

The length of your plan must be:

	5 years (or shorter if you are paying your unsecured creditors in full) if your household income is above the Connecticut median income, .
	At least 3 years (or shorter if you are paying your unsecured creditors in full) if your household income is below the Connecticut median income, .

If your case is dismissed, you may be barred from filing again for 6 months or longer.  This will give the bank enough time to complete the foreclosure.

Even if you are not barred from filing again, the automatic stay that keeps the bank from foreclosing will only last 30 days if you file bankruptcy again unless you have very convincing evidence that your circumstances have changed and you will be able to propose and complete a Chapter 13 Plan.

If your case is converted to Chapter 7, the automatic stay only lasts a few months until your discharge enters.  The bank may even not have to wait that long if they successfully file a motion for relief from stay.

To get caught up on any overdue mortgage or loan payments to save your house or your car.

To have the court enter a discharge canceling your other debts.  §1328

You are up to date in any payments you are making on a domestic support obligation (child support or alimony).  §1328(a)

You have completed an instructional course concerning personal financial management.  §111;  §1328(g)

There is no case going on against you in which someone claims you committed a crime, intentional tort or reckless act that caused serious physical injury or death during the last 5 years.  §1328(h)

(1)  Because of your particular circumstances, it would be unjust to blame you for not making all your plan payments.  Although each case is different, the following are some of the things a court may consider:

	Your efforts to earn income.
	If you had any unforeseen circumstances such as medical expenses or illness.
	How much of the payments you made.
	Why you were unable to pay your debts.
	Whether your debts resulted from the purchase of essentials or from extravagant consumerism.
	How many dependents you have.
	Whether you filed bankruptcy before.

(2)  You paid your unsecured creditors at least as much as they would have received if you had filed a Chapter 7 Bankruptcy.

(3)  You are unable to reasonably modify your plan.

Credit obtained by fraud or false pretenses.

Recent cash advances.

Recent purchases of luxury goods.

Those debts not listed in your schedules.

Alimony and child support.

Student loans (unless hardship).

Personal injury or death caused by driving while intoxicated.

Taxes you withheld from your employees.

Sales taxes you collected in your business.

Income taxes if any of the following are true:

	You filed the return during the 2 years before you filed bankruptcy.
	Your return was due during the 3 years before you filed bankruptcy.
	Your tax liability was assessed during the 240 (about 8 months) before you filed bankruptcy.
	You never filed a return.
	You filed a late return during the 2 years before you filed bankruptcy.
	You filed a fraudulent return.

Property taxes required to be paid during the year before filing bankruptcy.

Restitution or fines required by a criminal sentence.

*Fiduciary fraud.

*Embezzlement or larceny.

*Willful and malicious injury to persons.

Willful and malicious injury to property.

Income tax interest and penalties which became due after you filed bankruptcy.

Divorce property settlements or decrees.

Those debts that were or could have been listed in a prior case in which were denied or waived a discharge.

A loan used to pay a tax that you could not discharge.

Complete credit counseling.  §109(h)

Meet with attorney, review disclosures.

File petition, schedules, Plan, income statements and other documents.

Start making your Plan payments.

Attend meeting of creditors.  §341

Attend court hearing to have your Plan confirmed. 

Make your Plan payments over 3 to 5 years.

Receive your discharge.

Relax (you earned it!).