Chapter 13 Plan

What Is The Plan In A Chapter 13 Bankruptcy?

It helps to have a plan. In life. In business. In relationships. Plans are good things. So to, in Chapter 13 bankruptcy, having a plan is not only a good idea, it’s the law!

Clients look to me as their Orlando bankruptcy lawyer to formulate a Chapter 13 plan that meets all of their financial goals. The Chapter 13 plan, which lasts from 3 to 5 years, is used to cure arrearages on a mortgage, completely eliminate a second mortgage, discharge credit card debt, shave money off a car loan, or pay off IRS debt.

The person filing the Chapter 13 bankruptcy (the Debtor) must file a payment plan at the start of the case. The purpose of the plan is to explain what objectives the Debtor wants to meet while in bankruptcy. The plan also alerts creditors as to how they will be handled in the plan. Lastly, the plan tells the Chapter 13 Trustee who she is supposed to pay and what amount she is supposed to pay each creditor.

There are many decisions to be made by the Debtor when constructing a Chapter 13 plan. I see many Do it Yourselfer’s in Court who have a really hard time successfully formulating a plan that can be understood by the Trustee or the creditors. This often will result in the creditors objecting to the plan, or the Trustee filing a motion to dismiss the case. When that happens, the person has a bankruptcy on her credit report and absolutely nothing to show for it.

Hiring an experienced Orlando bankruptcy lawyer is a greta first step to getting the result you want in your Chapter 13 case. Most of the time in my cases, when my clients make their Trustee payments, they never even have to go to the Bankruptcy Court at all during their case. The most important thing, though, is that my clients succeed in meeting the financial goals they set at the beginning of their case.

In Chapter 13 cases, it’s all about having a plan. A plan that gets you through the Chapter 13 process and wipes out your debt is even better.

Want to find out more about Chapter 13 bankruptcy, then visit K. Hunter Goff’s site on how to choose the best Orlando bankruptcy lawyer for your needs.