How A Bankruptcy Laywer Can Assist You With Your Chapter 13 Payment Plan

Bankruptcy lawyers generally call a Chapter 13 petition a wage earners plan. Debtors with a regular source of income should ideally opt for a Chapter 13 filing. If you are facing foreclosure, you should consider a Chapter 13 filing. It can save your home. Hire the services of a bankruptcy law firm if you want to file a Chapter 13 bankruptcy petition. The law firm can advise you on your eligibility for filing a Chapter 13 bankruptcy petition.

If you file for bankruptcy protection under Chapter 13, you must submit a payment plan. Your payment plan must specify how you intend to pay off all your debts. A bankruptcy law firm can help you prepare your payment plan. There are many attorneys. However only an experienced bankruptcy attorney can help you. In a Chapter 13 payment plan, debtors can pay off each debt in installments and in some cases for less than the total debt. A Chapter 13 plan should include:
Submission of all future income necessary to fund your payment plan,
Full payment of all claims entitled to priority under 507 except when the Creditor agrees to less favorable treatment ( 1322(a)(2)) or the plan provides for all of your disposable income to be paid to the plan for a period of five (5) years (1322(a)(4)), and
Treatment in kind of all claims of the same class.

A Chapter 13 payment plan may be 36 or 60 months long. The court will not approve a plan that exceeds 60 months. An experienced bankruptcy attorney can assist you prepare your payment plan. A plan can:
Designate a class of unsecured claims, providing for treatment in kind of all such claims. Unsecured claims, for which a non-filing co-debtor is liable, may be treated differently.
Modify certain secured or unsecured claims.
Cure or waive a default.
Provide for payments to unsecured creditors to be made concurrently with secured creditors.
Provide for ongoing payments and/or for curing any default on any continuous claim.
Provide for payment of post-petition claims.
Assume, reject, or assign an executory contract or unexpired lease.
Provide for payments from property of the estate or of the debtor.
Vest the property of the estate in the debtor or another entity.
Allow interest to accrue on any non-dischargeable unsecured claim.

The bankruptcy court must approve your Chapter 13 payment plan. The bankruptcy court will review your payment plan to determine whether it fulfills all the requirements set forth in 11 U.S.C. 1325(a) including your ability to make the payments set forth in the plan, the appropriate treatment of all claims, the value of the property to be distributed is at least equal to the amount a creditor would receive in a Chapter 7 proceeding, and that your payment plan is proposed in good faith. Before confirming your plan, the bankruptcy court may consider other factors. An experienced bankruptcy attorney can review you plan to ensure its compliance with the requirements.