Dividend to Unsecured Creditors

In chapter 13 plan, the proposed payment to unsecured creditors is sometimes expressed as a percentage dividend, namely a percentage of the amount of the creditor's allowed unsecured claim. For a plan that pays nothing to unsecured creditors, the dividend is 0%, while a pay-in-full plan provides a 100% dividend.

Synonyms: 
Unsecured Dividend

Frequently Asked Questions

Our frequently asked questions also address Dividend to Unsecured Creditors:

What is the Chapter 13 "liquidation test"?

When an individual files chapter 13 bankruptcy, they have decided to voluntarily commit future income for paying certain debts. This type of bankruptcy uses a court approved plan to determine which creditors are paid what, and how much the debtor must pay to the

Read More ...

How much do creditors have to be repaid in Chapter 13?

The requirements for repaying creditors in a chapter 13 are somewhat detailed. The following is a general summary that notes the basic rules without going into finer details or exceptions.

Read More ...

Blog Posts

We have discussed Dividend to Unsecured Creditors in the following posts on our bankruptcy blog:

Credit Cards and Chapter 13 Bankruptcy

Mar 6, 2012

Many people have credit card debt, and many people file chapter 13 bankruptcy. But what about when there is credit card debt in chapter 13 bankruptcy? Chapter 13 plans are repayment plans, a fact that causes a good bit of uncertainty for people considering bankruptcy as a way to get out from burdensome credit card payments. This post explains the basics of how credit cards are treated in chapter 13, and explains why many chapter 13 plans provide no payment at all to credit card lenders.

Read More ...

Repaying Credit Cards in Chapter 13

Apr 4, 2012

Most people do not use chapter 13 to repay credit card debts. It’s often the case that a debtor is permitted under the bankruptcy code to obtain confirmation of a chapter 13 plan that pays nothing to unsecured creditors. For debtors making payments on credit cards in chapter 13, the chapter 13 plan serves as a consolidation loan on terms favorable to the borrower.

Read More ...
Subscribe to RSS - Dividend to Unsecured Creditors