When you file for Chapter 13 bankruptcy, unless the court grants you an extension, you must file a repayment plan with the court with your bankruptcy petition, or withing the 15 days following the date of the petition filing.
Your repayment plan must be submitted for the court's approval and must account for fixed payments made to the trustee on a regular schedule. The trustee distributes those funds to the creditors as outlined in the repayment plan. Here, our Bankruptcy Lawyer will briefly explain the process for preparing and filing for Chapter 13 bankruptcy.
Calculate and Compare
If you're filing for Chapter 13, you'll need to calculate the amount of debt you have in order to formulate your repayment plan. If the court believes you have too much debt, it may not allow you to file for bankruptcy.
You'll also need to consider how much income you have in regards to how much you'll pay out in your payment plan. If you don't have enough income to meet the repayment plan, the court may not let you file.
Calculate Property Value
Calculate the total value of your assets. This helps to determine how much of your assets are exempt, which factors into your payment plan under Chapter 13 bankruptcy.
After you've determined your eligibility for bankruptcy, you'll complete all the necessary paperwork by providing all pertinent financial information. This is where you'll formulate your repayment plan.
Meet With Trustees and Creditors
After you've filed for bankruptcy, you'll meet with the trustee to review your plan, and creditors may also be available to discuss the terms of the repayment plan.
A judge will make a determination on your proposed plan, and creditors are allowed to attend and bring any concerns to the judge before the plan is approved.
For more information on the bankruptcy application and approval process, contact us.