Salt Lake City Bankruptcy Lawyers

What is a Chapter 13 Plan?

An essential part of any Chapter 13 bankruptcy case is the repayment plan, which the debtor must file with the bankruptcy court within 15 days of filing his or her petition. This is a specific plan of payments that the debtor must pay regularly (usually on a monthly or biweekly basis) to the bankruptcy trustee, who will then distribute payments to creditors according to their claims. The payment plan typically lasts for three to five years, and the successful completion of the plan will result in the discharge of all eligible debts.

Where the money from a Chapter 13 payment plan goes to will depend upon the particular claims that creditors file with the bankruptcy court. There are three types of claims which may be filed: secured, unsecured and priority. Priority claims are the most important and often include items such as taxes and bankruptcy fees. Secured claims involve those for which a creditor has the right to take back property if the debtor does not make the payments, and unsecured claims are those for which a creditor does not have the special right to take action against the debtor’s property.

The amount of money that a debtor is required to pay in his or her Chapter 13 repayment plan will vary depending upon his or her amount of disposable income. This is the amount of money that the debtor has left after necessary expenses and bills. All of the debtor’s disposable income must go to the repayment plan. Within 30 days of filing for bankruptcy, the debtor must begin making payments to the bankruptcy trustee.

Contact a Salt Lake City Bankruptcy Attorney!

Would you like to find out more about Chapter 13 bankruptcy and how a repayment plan might affect you? Contact the Stone Law Firm today to speak with an experienced Salt Lake City bankruptcy attorney about your particular situation. We are happy to help you and want to provide you with the honest, applicable legal advice that you need to address your financial situation. Our skilled lawyers represent clients throughout all of Salt Lake City, Provo and Ogden, Utah.

Interested in a Chapter 13 bankruptcy? Contact a Salt Lake City bankruptcy lawyer at the Stone Law Firm today!