What is a Repayment Plan for Chapter 13 Bankruptcy?
Bankruptcy has been a go-to debt relief option for many Americans over the years. When life becomes too overwhelming to keep up with and expenses rise, you may be left with tons of debt that get you in a stranglehold. For those making over a certain amount of income but still struggling with debt, Chapter 13 bankruptcy may be a good way to stay afloat without losing your home, car or other assets.. A repayment plan is the centerpiece of Chapter 13 bankruptcy. This repayment plan is meant to provide your creditors with fixed monthly payments based on amounts you can afford in order to reduce your debts owed to them over time. Chapter 13 repayment plans are not always required to pay all of your debts. In many cases, you will be paying only pennies on the dollar for your debts. Because a repayment plan is so critical to your bankruptcy process, you should seek assistance from a bankruptcy lawyer to help you put together a worthy repayment plan that will be approved by the Bankruptcy Court.
What Goes Into an Acceptable Repayment Plan?
Repayment plans can be tricky to figure out because you have to strike a balance between enough money going to your creditors and having enough income for yourself to pay your necessary monthly expenses. While a repayment plan will limit your amount of disposable income, it can go a long way toward ensuring your future and alleviating your financial stress. Your Massachusetts bankruptcy attorney can go through each and every one of your debts and expenses to figure out the optimal balance that can provide you financial security.
Will a Repayment Plan Leave Me Enough Money to Survive?
Some of the luxuries many people have grown accustomed to with disposable income will take a major hit if you file for Chapter 13 bankruptcy but your repayment plan should leave you with enough income to pay your monthly mortgage, grocery expenses, medical expenses, and other necessities. An inefficient repayment plan may not benefit you in the long run and may even put you into debt with other creditors. Start working to construct a reasonable repayment plan with your bankruptcy attorney today.
Can a Bankruptcy Lawyer Help Me Optimize My Repayment Plan?
Facing Chapter 13 bankruptcy alone can feel daunting. Dealing with the stress of figuring out your financial plans and goals while navigating bankruptcy isn’t ideal. To help you alleviate your stress and worries, you should let our team of bankruptcy pros help you put together a repayment plan that works for all parties. Having a helping hand to answer your questions and lead you through your bankruptcy for its entire duration can help you solve any issues that arise and make sure you stay on track. Call Contant Law, P.C. today at 617-227-8383 for a free consultation for your Chapter 13 bankruptcy case.