Sample Chapter 13 Plan -- for illustration purposes only

In Re: J. Smith, Debtor

CHAPTER 13

BANKRUPTCY NO. XX-

1. If the instant estate were liquidated under Chapter 7 of the Bankruptcy code, the allowed unsecured claimants would be paid $_______. Under this plan, the allowed unsecured claimants will not receive less than that amount.

2. The Debtor shall submit to the supervision and control of the Trustee the following sums: $___.00 per month during the first year of the plan; $___.00 per month during the second year of the plan; $___.00 per month during the third year of the plan; $___.00 per month during the fourth year of the plan; and $___.00 per month during the fifth year of the plan.

3.The various claims of the Debtor's creditors shall be classified as follows:

a. Class 1: Claims filed and allowed which are entitled to priority under 11 U.S.C. 507. The administrative costs are the only priority claims contemplated by this plan. Any creditor entitled to the priority under 507 of the Bankruptcy Code contrary to the provisions of this plan shall be deemed to have waived any such priority, unless such entity objects to the plan.

b. Class 2: Claims filed and allowed which are secured by a lien which is not avoidable by the Debtor under 11 U.S.C. 522.

c. Class 3: All other claims filed and allowed.

4. The payments received by the Trustee from the Debtor pursuant to this plan shall be distributed as follows:

a. Class 1 Claims: The amount paid by the Debtor to the Trustee shall be distributed first to the Class 1 claims, pro rata, until they are paid in full.

b. Class 2 Claims: After the application of the appropriate amount each month to the Class 1 claims, the entire amount of the monthly payment remaining in the hands of the Trustee shall be distributed in monthly installments, pro rata, to the holders of the Class 2 claims until each such claimant shall have received 100% of the amount allowed on each such claim.

c. Class 3 Claims: After the application of the appropriate amount each month to the Class 1 and Class 2 claims, the entire amount of the monthly payment remaining in the hands of the Trustee shall be distributed in monthly installments, pro rata, to the holders of the Class 3 claims.

5. Postpetition mortgage payments on the first mortgage on Debtor's residence, held by Countrywide Mortgage Company, will be paid by the Debtor directly to that creditor and will not be paid under the plan. The Debtor will cure the default on that mortgage within a reasonable period of time under the plan by making _____ equal monthly payments.

6. Postpetition mortgage payments on the second mortgage on Debtor's residence, held by First National Bank, will be paid by the Debtor directly to that creditor and will not be paid under the plan. The Debtor will cure the default on that mortgage within a reasonable period of time under the plan by making _____ equal monthly payments.

7. The delinquent tax obligation due ______ County Treasurer for the tax year 19__ in the amount of $_____.00 will be paid through the plan.

8. The delinquent tax obligation due _________ School district for the tax year 19__ in the amount of $_____.00 will be paid through the plan.

9. The delinquent tax obligation due ________ Township for the tax year 19__ in the amount of $_____.00 will be paid through the plan.

10. By failing to object to this plan, or any modification thereof, all creditors holding claims agree not to make any effort to collect their claims from any co-signers that may exist, so long as this case remains pending.

11. Confirmation of this plan shall constitute a finding that the plan constitutes the Debtor's best effort under all the circumstances to pay creditors, within the meaning of 11 U.S.C. 727(a)(9).

12. Confirmation of this plan shall constitute a finding in accordance with 11 U.S.C. 1322 that there is cause for extending the plan beyond three years. Confirmation shall also constitute approval of such extension. Such extension is essential to the success of the plan. Without it, the plan would fail and no claims wold be paid in full.

13. The current defaults by the Debtor on the Class 2 claims are waived and shall be cured by the completing of this plan.

14. The title to the property of the estate shall re-vest in the Debtor upon confirmation of this plan, and the Debtor shall have sole right to use and possession thereof.

15. Upon ex-parte application, for good cause shown, the Debtor may alter the amount or timing of the payments under this plan. Such modifications shall be permitted if they are reasonable and if they do not decrease the total amount of money that will be paid out under the plan.

16. If the Debtor defaults, after filing of this petition, on any payment to a utility entitled to adequate assurance under 11 U.S.C. 366, then that debt shall, upon application of said utility, become a Class 1 claim under this plan. This priority shall be deemed adequate assurance of the utilities' future payments.

17. The following executory contracts are rejected, with the refunds of prepaid charges claimed as exempt property: N/A

18. The following liens are avoided pursuant to 11 U.S.C. 522(f): N/A

19. Upon completion of this plan, all debts listed in Debtor's Chapter 13 statement, except those excepted by 11 U.S.C. 1328(a)(1) or (a)(2), shall be discharged.

20. If, prior to the expiration of the period set forth in Paragraph 2 of this plan all filed claims provided for in this plan are paid in full, this plan shall terminate on that date.

21. The automatic stay is to remain in place until the earlier of (1) all payments are made pursuant to the plan or (2) the Debtor receives his discharge in bankruptcy.

______________________

Debtor

Date: