Drafting a Chapter 13 Repayment Plan
The current US Bankruptcy Code tends to encourage most people in debt to file under Chapter 13 rather than Chapter 7. This is because Chapter 13 allows filers to develop and follow a financial plan that will repay their debts over time. If you are struggling with more debt than you can manage, this type of plan could help you restore your credit rating while protecting your important assets.
Individuals filing for Chapter 13 bankruptcy are allowed to draft their own repayment plans, although these drafts will need approval from courts and creditors. If you are considering this option, an Arizona Chapter 13 lawyer from the Harmon Law Office, LLC can help you develop a plan that is both fair to you and compliant with the law. Call our offices today at 480-829-0494 to learn more about our legal services.
Repaying your Debts under Chapter 13
Your Arizona Chapter 13 repayment plan will cover either three or five years, depending on your needs and circumstances. It will include regular payments that you will make to your bankruptcy trustee. He or she will repay your debts in the following order:
- Priority debts. These are non-dischargeable debts that are considered especially important to repay. They can include child support, back taxes, and employee wages.
- Secured debts. These are the debts that could not be discharged, but are also not considered high priority. They commonly include mortgages and car loans.
- Unsecured debts. If you have leftover income after paying your trustee and covering your basic needs, the money should go to your unsecured debts such as credit cards.
Drafting a repayment plan that will win approval from your creditors can sometimes be a lengthy process, but our Arizona Chapter 13 bankruptcy attorneys can help make the process much smoother.
Contact Us
The Harmon Law Office, LLC provides efficient and knowledgeable legal support to individuals who are struggling with debt. Contact our Arizona Chapter 13 bankruptcy lawyers at 480-829-0494 to learn more about how we can help you.