Indianapolis Chapter 13 Bankruptcy Repayment Plans Attorney
Restructuring Your Debt Under Chapter 13 Bankruptcy
Under the terms of Chapter 13 bankruptcy, a debt reorganization plan must be submitted for approval by the court. While each case is different, in general, people are required to pay back as low as 10% of what they owe to their unsecured creditors over a three- to five-year period. When creating a repayment plan, you are required to provide full disclosure of your monthly expenses. You must identify all sources of income. You are also required to list all unsecured and secured debt you have on credit cards, loans, medical bills, home loans, student loans, etc.
The Beauty of Chapter 13 is that your unsecured creditors only have approximately four (4) months to timely file a claim after you file. After the deadline has passed, they are barred from requiring you to pay them back. Of course, for the debt to be discharged, you must complete the terms of your Chapter 13 plan.
Another huge advantage in Chapter 13 is: Credit Card creditors can ONLY file a claim for the principal balance owed at the time of the filing. NO INTEREST CONTINUES TO ACCRUE ON THAT BALANCE! So even if you make enough money that you are required to pay 100% of the timely filed unsecured claims, you will be paying the principal balance INTEREST FREE! This gives the high wage earner LIGHT AT THE END OF THE TUNNEL.
Creating Your Repayment Plan
Since your repayment plan is subject to approval by the court, it's important to work with an experienced bankruptcy attorney who can help you create a realistic, financially sound reorganization of your debt. While creditors can object to your proposed Chapter 13 repayment plan, once a judge approves a repayment plan creditors have little choice but to accept its terms.
The 341 Meeting With Creditors -- What to Expect
About a month after you've filed for Chapter 13 bankruptcy, you are required to meet with your Chapter 13 trustee. Commonly referred to as the "341 meeting" -- after the section in the Bankruptcy Code that requires it -- this meeting allows your trustee to ask you any questions he or she might have about your repayment plan.
Court Approval of Your Chapter 13 Bankruptcy Repayment Plan
Once your 341 meeting is complete and your trustee has filed a favorable report (assuming any objections on the part of creditors have been resolved), a judge can approve your repayment plan. If you comply with the terms of your debt reorganization plan, any debt remaining after its term has expired will be automatically discharged.
Contact Indianapolis Chapter 13 Bankruptcy Repayment Plan Attorney
Creating a Chapter 13 bankruptcy repayment plan requires an understanding of bankruptcy laws and the bankruptcy process. In order to avoid unwanted complications and difficulties, contact Indianapolis Chapter 13 bankruptcy lawyer Portia Douglas today to schedule a consultation to discuss your case.