Usually not. Under Chapter 13, debts are normally paid out of the payments made to the Chapter 13 Trustee, and not out of the debtor’s property. If the debtor has considerable nonexempt property, however, and cannot make sufficient payments to pay enough of debts to satisfy the Court, some of the debtor’s property may have to be used to pay creditors, but that is very rare. Also, if a secured creditor is not being paid under the Plan, the secured creditor may be permitted to repossess the property securing the claim if the debt owed is not paid.
Also, you must list all claims you have against anyone or any entity – even if you have not filed a lawsuit or received any money for the claim. For example, if you have a claim against someone for an auto accident injury, you MUST list the claim for injuries as an asset in your bankruptcy or you may be FOREVER PROHIBITED from getting paid on the claim. If you do not list the asset, you might never collect even one dollar on the claim. If you have a million-dollar claim, you will lose the million-dollar claim if you do not list it in your bankruptcy!
