Chapter 13 Repayment Plan
One of the most appealing aspects of filing for Chapter 13 bankruptcy is the opportunity for debtors to propose a repayment plan that will allow them to repay a reduced portion of their debt on a schedule that is much more reasonable than it was originally. While this can offer tremendous benefits to many individuals that are struggling with seemingly insurmountable debt, there are some important things to consider when you intend to propose a repayment plan to the bankruptcy court.
At Gagnon, Peacock & Vereeke, P.C., our Dallas bankruptcy attorneys have extensive experience helping clients file for Chapter 13 bankruptcy and build a fair repayment plan. A bankruptcy attorney can help you determine the best plan of action for your specific financial situation and help you throughout every step of the filing process.
Proposing Your Repayment Plan
In Chapter 13 bankruptcy, debtors have 15 days from the date they file their paperwork to submit a plan for the repayment of their debts. Once the repayment plan has been submitted, the court will review it and determine whether or not it is an acceptable proposal. When working with your attorney to create your repayment plan, you will need to consider the following three types of debts:
- Priority: these debts are nondischargeable and must be paid in full
- Secured: creditors still have the right to take back certain property, but you still may be able to keep your property by paying it off through your repayment plan
- Unsecured: these debts are fully dischargeable and creditors are not allowed to reclaim your property
Generally, repayments plans must allow priority claims to be paid in full; however, secured and unsecured loans may be negotiated.
Contact a Dallas Chapter 13 Bankruptcy Attorney
If you are facing the prospect of filing for Chapter 13 bankruptcy, the Dallas attorneys of Gagnon, Peacock & Vereeke, P.C., can help you through the applications, proposals, and negotiations by offering professional advice throughout the process. To learn more about how we can help, contact our Dallas legal team by calling (214) 317-4448 today.