They owe us 946,000 and pay us 200.00 a month. The child has told us that we will get some kind of payment from the court for 5 years and then it goes away. But the child assures us that she will continue to pay
Your child is basically correct. Like any other creditor, you will likely get some amount over 5 years and then, assuming she complies with the plan, a discharge of debt will be entered. Of course, we don't know all the facts - just the basic information you told us.
Chapter 13 Bankruptcy Attorney
To get anything you will have to file a Proof of claim with the bankruptcy court by the deadline for filing proofs of claim. You should get the form in the mail along with the notice of their having filed a bankruptcy within a week or so of the date they filed their case. Upon completion of their plan whatever amount you have not been paid will be discharged and you will not be able to even ask them for additional payments. You would not be under any obligation to include her/them as takers under your will. They could continue to make payments to you after the discharge of their bankruptcy, but you could not demand they do so.
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As stated, you are creditor like any other from the perspective of the bankruptcy. To get paid, you will need to file a proof of claim with the bankruptcy court. Assuming the chapter 13 reaches discharge (most don't), then the debt is discharged and you cannot take any further action to collect. The kid can voluntarily pay you after the BK, but you cannot take any action once the kid has the bankruptcy discharge.
If you have not filed a Proof of Claim in the CHapter 13, you need to immediately. If your debt is UNSECURED, then the balance will be discharged, and you will be forever banned from billing her. IF the Loan is secured, then in order to Confirm the Plan, it would have to pay you off in full. If she has committed fraud, file a non dischargeability action. Consult with Bankruptcy Counsel ASAP.
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Chapter 7 Bankruptcy Attorney
While the previously posted answers are correct in the law, for this kind of money you really should engage an experienced creditor's rights lawyer to be sure that you comply with all of the requirements of bankruptcy law and to obtain your maximum recovery.
This response is intended to give a general overview of the law and should not be treated as legal advice. There are too many factual issues and exceptions in the law to provide definitive conclusions about your circumstances.
The one factor that has not been discussed and is very important is this - there is a limit on the amount of unsecured debt a debtor can have and be in Chapter 13. The amount is around $365,000. If the debt you described is unsecured, the case should be dismissed and your ability to collect could be enhanced. You will need to contact a Chapter 13 attorney to make sure you find out your options.