The Chapter 13 Plan has various categories of debt and each category is treated in its own special manner. Mortgage claims are generally addressed in either Class 1 of the Plan or Class 4. If the individual is current on their mortgage payment, it will generally go into Class 4, meaning they continue to pay the mortgage payment directly to the bank each month. If the individual is delinquent on their mortgage payment, it will generally go into Class 1, meaning the individual will cure the delinquency through the confines of the Chapter 13 Plan.
Vehicles are usually addressed in Class 2 or Class 4 of the Chapter 13 Plan. Generally speaking, if the debtor is delinquent on the terms of the car loan, or if the car loan matures before the Chapter 13 plan is set to complete, then the car loan is usually placed into Class 2 and the loan is paid in full over the length of the Chapter 13 Plan. If the car loan matures after the completion of the Chapter 13 and the individual is current on the terms of the loan, or if there is a co-debtor on the car loan, then the Debtor has the ability to place the loan into Class 4 and they continue to pay the loan directly to the bank.
Taxes that remain a priority debt (meaning they must be paid back in full through the Chapter 13 Plan) are placed in Class 5. For the most part, Taxes remain a priority debt if they are for a calendar year that is less than 3 years old, if the taxes were filed within the last 2 years, and if assessed within the past 1 year---as long as one applies, they will remain a priority. Other debts that fall into Class 5 are child support and alimony payments, if delinquent. So, if an individual is delinquent on their child support or alimony payments, that delinquent portion is a priority debt and must be paid back in full within the Class 5 of the Chapter 13 Plan.
