Chapter 13 Repayment Plan
When deciding whether or not Chapter 13 bankruptcy is the right choice for you, one large benefit to consider is the Chapter 13 repayment plan. Essentially, the repayment plan is the heart of Chapter 13 bankruptcy, as it is the reason that allows individuals to pay back their debts owed. The Chapter 13 repayment plan is an agreed upon plan that will showcase how long the plan will last, how much is owed to each creditor, and more.
In order for a Chapter 13 repayment plan to take place, the plan must first be confirmed and approved by the bankruptcy court before the case can continue.
John Dunlap is an experienced attorney that can help you with your Chapter 13 repayment plan. We offer FREE 30 minute sessions, so give us a call to discuss your situation.
Chapter 13 Repayment Plan Essentials
There are a few steps along the way of the Chapter 13 repayment plan that are needed in order to have better success. While this plan is beneficial to those looking to pay back their debts in a set amount of time, knowing what to expect may put you one step closer to becoming debt free.
- What do I need? Many of the forms that you will need for the Chapter 13 repayment plan include tax forms, listings of income, property, debts, and more. This paperwork may help you and a trustee to decide how to propose your repayment plan based off of this information. In addition to these files, you may also need tax returns and proof that you have completed credit counseling.
- How long is a Chapter 13 repayment plan? The length of a Chapter 13 repayment plan usually depends on your income. After a determination is made of what you can pay, you may propose a plan that lasts anywhere between 3 to 5 years.
- How much will I pay? Often times, the payment to different creditors will depend on what you owe them. While some creditors may receive 100% of what you owe, there may be times when some will receive a smaller percentage. For example, secured debts like mortgages or car payments, will usually be paid 100%. On the other hand, unsecured debts, like credit cards, may range from 0 to 100% payment.
Chapter 13 Bankruptcy Court
One of the most common questions about Chapter 13 bankruptcy is “do you have to go to court for Chapter 13?” There will be times during Chapter 13 that a court appearance may be necessary in order to get the repayment plan approved by a judge. However, before this takes place, there is usually a meeting of creditors that comes first.
Meeting of Creditors
In Chapter 13 bankruptcy, it is usually required that you attend a meeting of creditors, which does not happen in a court hearing. It usually takes place 21-50 days after bankruptcy is filed and during this time, your trustee may meet with some of your creditors. Although the meetings may be relatively short, they are still required and you should plan on attending with your trustee to gather facts and information about your case, before going to the confirmation hearing.
Confirmation Hearing
Not to be confused with a meeting of creditors, a confirmation hearings are typically court proceedings that discuss the details of the repayment plan. In order for the repayment plan to take place, a bankruptcy judge must first approve it in a court hearing for it to become effective. These hearings are typically short and may only last a few minutes to an hour.
If there are objections made to the repayment plan by creditors are usually discussed beforehand, to provide you and your trustee plenty of time for revisions. After that, the judge will then review the files and decide if the repayment plan can proceed.
Repayment plans and bankruptcy court can be overwhelming. John Dunlap is an experienced attorney that may be willing to help your case. Give us a call at (901) 320-1603.