What Is The Plan In A Chapter 13 Bankruptcy?
It always help to have a plan. Plans are are a good idea for relationships, business, and life in general. When filing Chapter 13 bankruptcy, a plan is not only a good idea, it’s required by law.
Clients look to me as their Orlando bankruptcy lawyer to formulate a Chapter 13 plan that meets all of their financial goals. The Chapter 13 plan, which lasts from 3 to 5 years, is used to cure arrearages on a mortgage, completely eliminate a second mortgage, discharge credit card debt, shave money off a car loan, or pay off IRS debt.
The person filing the Chapter 13 bankruptcy (the Debtor) must file a payment plan at the start of the case. The purpose of the plan is to explain what objectives the Debtor wants to meet while in bankruptcy. The plan also alerts creditors as to how they will be handled in the plan. Lastly, the plan tells the Chapter 13 Trustee who she is supposed to pay and what amount she is supposed to pay each creditor.
There are many choices to be made by the Debtor when developing a plan at the beginning. Many times, I see Debtors in Court who have not constructed a plan capable of being understood by creditors or the Trustee. Sometimes, as a result, the Debtor’s case can be dismissed. When this happens, the Debtor will have a bankruptcy on his credit report, but none of the benefits he could have received had the plan been done correctly.
If you want a good result from your Chapter 13 case, hiring an experienced Orlando bankruptcy lawyer is a great place to start. In almost all of my cases, so long as my client keeps up with the Trustee payment during the plan, my client will never see the inside of the Bankruptcy Court. Even better, my clients will have met all of the goals they wanted to achieve when their case was filed.
Plans are the King in Chapter 13 cases. Having a solid plan that eliminates your debt and provides a smooth ride in your Chapter 13 case is the best!
Learn more about Chapter 13 bankruptcy. Stop by K. Hunter Goff’s site where you can find an experienced Orlando bankruptcy lawyer and learn how he can help you.
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