The Chapter 13 Bankruptcy Repayment Plan & You
What You Need to Know about Filing Chapter 13 Bankruptcy
If you decide to file Chapter 13 bankruptcy, the repayment plan will definitely become a part of your life for the next 3-5 years. Therefore, it is imperative that you understand how it works and what it can do for you.
The Chapter 13 repayment plan is structured to help you keep your payments to creditors on track and pay your past due balances. This arrangement will place you in control of your finances and keep your property all at the same time.
At Chapter13.Me, we are here to help you learn all there is to know about the Chapter 13 repayment plan and to connect you with a local bankruptcy attorney who can provide you with more information on how filing Chapter 13 bankruptcy may help you stop foreclosure and get breathing room from your debts.
Just fill out our free bankruptcy case evaluation form or call 1 (888) 632-0504. Once we receive your information, we will connect you with a nearby bankruptcy lawyer from our nationwide network of sponsoring bankruptcy lawyers.
Can You Liquidate Your Assets under the Chapter 13 Repayment Plan?
No. Liquidation is not an option under Chapter 13 bankruptcy. The purpose of Chapter 13 bankruptcy is to allow you to keep your property and make the payments on your past due bills. Your “fresh start” will take place 3-5 years after you enter into the repayment plan and make all the payments as scheduled. While it will take you a little longer to experience freedom, you will have more time to pay your bills and will get to keep your home and car.
What about Your Credit Cards?
You will probably lose all of your credit cards under the repayment plan, but that may not be a bad thing. Once you have completed your repayment plan, then you may be able to obtain new lines of credit. Just don’t expect it to happen overnight. Patience will be a virtue.
Tell It to the Judge
You must also be prepared to give an explanation to the judge about how you ended up in his or her court to file bankruptcy. This is nothing to be embarrassed about; the judge has probably heard it all.
The provisions of the Chapter 13 repayment plan bind both you and your creditors for the terms specified. Once the plan is confirmed by the court, it is up to you to make the plan succeed. You must make regular payments to the trustee either directly or through payroll deductions. Just remember, the upside to this is that you will be able to keep your property as the payments are made.
What the Chapter 13 Repayment Plan Cannot Do For You
You will not be able to get rid of certain non-dischargeable debts under a Chapter 13 repayment plan. Certain domestic obligations, taxes, student loans, and other particular debts are not covered under a Chapter 13 petition. Also, you will have to prove that you are current on your domestic obligations before you can receive a discharge under Chapter 13.
Connect with a Sponsoring Bankruptcy Attorney about the Chapter 13 Repayment Plan
Need more information on what the Chapter 13 bankruptcy plan may mean for you?
Just complete our free bankruptcy case evaluation form or call 1 (888) 632-0504, and we’ll quickly connect you with a local Chapter 13 bankruptcy lawyer from our nationwide network of sponsoring Chapter 13 bankruptcy lawyers.