Suggest a Repayment Plan for Chapter 13 Bankruptcy

Did I say "veno property of value?" I meant "NO property of value." :oops:

gena,

To get the repayment plan approved make sure that the minimum amount that you must pay each month is lesser than or equal to your monthly disposable income.

Monthly disposable income is the difference between your net income and monthly necessary expenses and minimum monthly payment is calculated by adding trustee fee and monthly installments through out the repayment period.

Also try to list all your assets and liabilities so that court can get the proper idea of your financial state.

Hope some other members of this board will come up with some more points.

Hi gena

Welcome to the forums.

As you might be knowing that this bankruptcy is also known as reorganization bankruptcy. Under the repayment plan, you can pay the debt within a period of three to five years. Your creditors will get a certain percentage on the dollar depending upon your ability to pay the debt.

Under the chapter 13 bankruptcy repayment plan, you will have to make payments within 30 days after it has been filed with the court. The bankruptcy trustee will collect the money from you and a person is appointed to review your case. After the plan gets confirmed by the court, your payments are distributed to your creditors.

Do you have a regular job with a regular income? If you have so, the monthly payments can be automatically transferred to the bankruptcy court.

Usually, the standard repayment plans last for three years. If there is any balance amount after the repayment plan period, it is discharged. However, it depends upon the type of debt if it is dischargeable by law.

Regards
Roxette

Thank you both so much. This is all very helpful information.

How about the format of the plan itself? Does it basically go in a letter form? Also, do you just state that you would like to pay, say $200/month until you've repaid all debt, or do you specifically indicate what portion of this total monthly amount is to be allocated to whom?

So many questions, so little time. I have until next Friday at 4 PM EST. Yikes!!!

gena,

The members of this board generally do not speak for bankruptcy because it just ruins credit history and takes few years to regain the credit worthiness.

Since you do not owe any secured debt, you can also try a consolidation. It will help you in the repayment process and assist you to repair your credit as well. See why bankruptcy is avoided-
http://www.debtconsolidationcare.com/avoid-bankruptcy.html

However; if you still want to go with it, I'll suggest hiring a lawyer because court proceedings are much complicated.

As per as the repayment plan is concerned, try to search some online tools for drafting the plan.

Bryan

Bankruptcy is a refined process covering full details and interpretations on the basis of prior case laws. This leads to believe that each case is different and so are the consequences to the debtor. If you don't have a proper planning before filing of bankruptcy, a lot of money or property can be lost and not to mention countless hours in revising the incorrect documents.

You should structure your repayment plan with a skilled lawyer so that the whole process is effective as per the specific situations.