Q: How does a 100% plan work in a chapter 13 bankruptcy?

A: A Plan that pays off all creditors in full is a one hundred percent Plan.

The advantage to the debtor is that no interest or other charges on any unsecured claims, e.g., credit cards, accrues, and the Plan may be as long as five years.

The disadvantage to the debtor is that for that benefit, the debtor must pay the Ch. 13 fees for the Plan duration.

There may be other debtor-benefits, e.g., voiding preferences and/or judgment liens.

A: You are correct.

A: Yes, if the debtor is on a 100% Chapter 13 repayment plan, that generally means the plan proposes to pay all filed and allowed unsecured claims in full over the 3-5 year plan length. This is in contrast to more common plans that pay only a percentage of unsecured debts.

Specifically, here is how a 100% Chapter 13 plan would work:

- The debtor calculates disposable income and multiplies it out over the plan length to determine the total amount available to pay creditors.

- This total amount is sufficient to pay all unsecured claims in full, along with any applicable trustee fees.

- General unsecured creditors would receive 100% of the amount owed to them, usually with interest.

So in this situation, since your claim would be paid back at 100% under the plan, you likely do not need to file an objection to discharge. Your debt should be completely repaid through the bankruptcy.

The only risk would be if the debtor is unable to complete the 100% plan for some reason. However, given the plan terms, it does not seem filing an objection is necessary at this point.