One of the distinguishing characteristics of chapter 13 bankruptcy is the requirement of a repayment plan.
Many debtors looking to begin the chapter 13 bankruptcy process often have questions about the repayment plan process.
We have created a guide to the repayment plan with everything that you should know.
Whereas chapter 7 bankruptcy requires no repayment of debts, chapter 13 bankruptcy requires monthly payments to be made over the course of a three to five-year period.
You and your attorney submit a repayment plan for the court’s approval. It details your plan to repay creditors over a period of three to five years.
This personalized repayment plan serves as the roadmap in your journey to being debt-free. It includes monthly payment amounts based on factors like household income and monthly expenses. For example, expenses include things like food, utilities, and healthcare expenses.
Plans must typically be filed with the bankruptcy court within 14 days of filing the bankruptcy petition (unless an extension has been granted).
You can begin repayment once courts approve your repayment plan, and any debts remaining after 3-5 years can be discharged.
Each type of debt receives unique treatment in chapter 13 bankruptcy, with some debt not requiring repayment at all.
As always, it’s important to seek legal counsel about chapter 13 repayment from a trusted attorney, but debt typically falls into one of three categories:
Having the right repayment plan is one of the most important keys to a successful chapter 13 bankruptcy case.
We understand that calculating a chapter 13 repayment plan can be a lengthy and daunting process for clients.
So, at Parker & DuFresne, our goal is to take the stress out of the chapter 13 repayment process.
We specialize in bankruptcy law, striving to get clients across Northeast Florida back on the road to financial stability as we bring them the resources they need for a successful case and a bright financial future.
We guide you through the complete process and use our resources to help you develop a chapter 13 repayment plan. This will allow you to successfully navigate a clear path towards debt repayment.
If you would like to learn more about chapter 13 repayment plans, contact us today!
Parker and DuFresne