A Bankruptcy Attorney in College Station Discusses the Chapter 13 Repayment Plan
There are two kinds of bankruptcy paths a consumer debtor may follow: Chapter 7 and Chapter 13. Your bankruptcy attorney will explain the differences of each to you upon your first meeting; however, the pivotal issue in deciding which proceeding to choose involves your likely ability to repay your outstanding debts.
If you are unable to pay your outstanding debts, you may wish to pursue a Chapter 7 proceeding which involves a total liquidation. If you are likely able to repay your debts, Chapter 13 offers debtors the opportunity to engage in a payment plan that will help you to emerge from bankruptcy debt-free and with a fresh financial outlook.
Chapter 13 Repayment Plan As its name suggests, the Chapter 13 repayment plan is a schedule under which you work toward repaying all of your outstanding debts. You will make one payment each month to your bankruptcy trustee, who will then disburse your payment among each of your creditors. The plan must be approved by the bankruptcy court at the outset.
If, during the course of your repayment plan, you find yourself unable to keep up with the monthly payments, you can convert your case from a Chapter 13 to a Chapter 7. Under bankruptcy laws, priority debts must be repaid 100 percent, including child support arrears, back taxes, outstanding payroll to employees or contributions to an employee benefit fund.
Contact Us Today for Help with Your Chapter 13 Plan You should never embark on the bankruptcy journey without the assistance of an experienced bankruptcy attorney in College Station. To get started on your Chapter 13 repayment plan, contact the Peterson Law Group today by calling 979-703-7014.