Chapter 13 Repayment Plan
Chapter 13 repayment plans allow individuals with debt to regain control of their financial life. Essentially, Chapter 13 allows the debtor to retain all their property and repay all their obligations for three to five years, as agreed upon in the repayment plan.
Brooklyn bankruptcy attorneys can help determine which bankruptcy plan is best for your financial needs.
What is a Chapter 13 Repayment Plan?
A Chapter 13 repayment plan, also referred to as a wage earner’s plan, allows individuals with a regular income to create a plan to repay all or a portion of their debts. This form of bankruptcy allows the repayment plan to be extended anywhere from three to five years. A Brooklyn Chapter 13 Repayment Plan Attorney can help determine how long and much your monthly payment plans will be.
The courts will decide how long the repayment plan will be, and during this time, the law forbids creditors from beginning or continuing any collection efforts. Additionally, the debtor cannot take out any new credit without the court’s approval.
Who is a Chapter 13 Repayment Plan for?
A Chapter 13 repayment plan is for individuals who have less than $394,725 in unsecured debts and less than $1,184,200 in secured debts. The amounts are adjusted periodically based on the consumer price index, and your bankruptcy lawyer in Brooklyn can help determine if you qualify for Chapter 13 or not.
Individuals may be disqualified from filing for Chapter 13 if they have had a bankruptcy petition dismissed due to their failure to appear in court or voluntarily dismiss the file themselves within the past 180 days. Additionally, an individual may now qualify for Chapter 13 if they have filed for Chapter 7 within the past four years or if it has been less than two years since their last Chapter 13 was discharged.
What does filing for a Chapter 13 Repayment Plan entail?
A Chapter 13 repayment plan begins with filing a petition with the bankruptcy court in the area where the debtor resides. Items to include with the petition include:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of unexpired leases
- Statement of financial affairs
- Copies of any debt repayment plans through credit counseling services
- Evidence of payment from employers
- Statement of monthly net income
- Any anticipation of an increase in revenue or expenditures after filing
- Record of any interest in federal or state-qualified education or tuition accounts
- Copies of previous tax returns
- A list of all creditors and amounts owed
A bankruptcy attorney in Brooklyn can help you gather all necessary paperwork and file it with the courts. Once the bankruptcy petition has been filed, an impartial trustee is assigned to the case, and a hearing with the trustee is scheduled.
The trustee notifies all creditors that a Chapter 13 case has been filed in your name. After this point, creditors can no longer seek to collect consumer debts from you. However, they do have the option to appear in court to ensure they receive their share of the money collected by the trustee.
During the hearing with the trustee, they will ask you a few questions about your financial situation and why you are filing for Chapter 13. Your chapter 13 lawyer Brooklyn NY will be with you during this hearing.
How your bankruptcy attorney can help
Filing for bankruptcy can be scary and intimidating, and you should not have to do it alone. So call the Ursulova Law Offices today and speak with a Chapter 13 lawyer in Brooklyn and learn more about how our attorneys can help you. We will be by your side every step, helping gather paperwork, filing your petition, establishing a workable repayment plan, and appearing with you during the trustee hearing.