The Chapter 13 Repayment Plan
The major feature of Chapter 13 bankruptcy is the repayment plan. This plan is established to help a debtor work through a sizable portion of their debts, generally prioritizing secured debts over unsecured debts. According to the rules regarding these plans, a debtor should be expected to meet payments needed to fulfill the plan and potentially have a substantial amount of their remaining debt discharged.
If you’re thinking about filing under Chapter 13 bankruptcy, you may have some questions about the repayment plan. Our experienced legal advisors are prepared to address these concerns. To learn more about your bankruptcy options and obligations, contact Florida Chapter 13 bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
How Does the Repayment Plan Work?
The Chapter 13 repayment plan is relatively straightforward, once a plan is agreed upon. Set by the court, these plans are meant to provide a person with the opportunity to repay most of their debts according to reasonable expectations given a debtor’s financial situation. These repayment plans work in the following ways:
- The plan must be paid off in regular intervals
- Failure to pay can result in the dismissal of the bankruptcy case
- Plans often last between three to five years
- Secured debt is paid, while unsecured debt may only marginally be paid
- Once the plan is complete, the remainder of a person’s applicable debt may be discharged
These plans are specifically tailored for a debtor’s unique situation, making payments accessible for anyone’s specific level of income and debt.
Filing for bankruptcy on your own can be a difficult, arduous process. However, we can likely assist you through your case with quality legal advice and representation. For more information regarding how we may be able to make your Chapter 13 case easier to handle, contact Florida Chapter 13 bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675.