The Chapter 13 Bankruptcy courts place a responsibility on you where you have to commit to paying as much of your unsecured debt as possible over a specified length of time. This time can range between three and five years. This responsibility is classed as a good faith requirement. This is produced through a repayment plan that you must create, and it must be given to the bankruptcy court for the approval. As part of the plan you will have to determine what your disposable income is. This disposable income must go towards the repayment to your unsecured creditors.
It is the court that determines what good faith means. Each State has their own rules when it comes to a bankruptcy and has their own way of defining what good faith is. Some courts base their definition of good faith on that the debtor is being honest in what they are presenting for their bankruptcy, and have not concealed any of the assets, or are not committing fraud. In other states the bankruptcy courts may define good faith based on the validity of the disposable income test.
For either a Chapter 13 bankruptcy or a Chapter 7 it entails a great deal of paperwork which can be complex, and for this reason many people choose to use the services of a Cincinnati bankruptcy attorney to assist them. It is imperative that the individual filing for any type of bankruptcy be honest and forthcoming with all of the details that pertain to their financial situation. The Bankruptcy court is responsible for ruling on the repayment plan which must be fair to all parties concerned.