If you need to file for bankruptcy, but want to retain your assets,
Chapter 13 bankruptcy may be a good option for you. Chapter 13 is a good option for people who have a consistent, reliable income. After you file a petition for Chapter 13, you must file a repayment plan within 15 days. Calculating your monthly payments under a Chapter 13 repayment plan can be complicated. First, you need to determine whether you have “
priority claims” debts according to the Bankruptcy Code. Priority debts include, but are not limited to, spousal support and child support. These debts must be repaid in full and have payment priority over other types of debt.
Care must be taken when calculating Chapter 13 repayment plans. Each state may use a slightly different calculation for repayments plans, and the median income for each state is different. Chapter 13 repayment plans typically are set up for a three year or five year plan, and your disposable income each month will help to determine how much your payment will be each month, as well as the length of your repayment plan.
There are Chapter 13
repayment calculators available online. While these calculators may be helpful in getting a ballpark idea of your payments, they should not be considered as a substitute for
legal advice from a bankruptcy attorney. A bankruptcy attorney in your state is the most reliable source for determining your monthly repayment amount in a Chapter 13 bankruptcy case.
Richard Croce -
Rich@rrc-llc.com
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