The Chapter 13 Repayment Plan
The central component of a Chapter 13 bankruptcy is the repayment plan, or the document which will detail how your creditors will be repaid and the amount which you will put toward repayments each month. Creating the repayment plan is frequently a complex process that involves in-depth investigation of your finances in order to determine your living expenses, disposable income, and how much of your debt you can pay off accordingly.
At Hong Law, PLC, we aim to assist our clients in utilizing the various tools and resources offered by the bankruptcy system so they can better manage their finances and work through virtually any debt situation to a desirable solution. To learn more about your rights and options for debt relief, call an experienced Cedar Rapids Chapter 13 bankruptcy attorney today at (319) 294-5853.
What You Pay
The amount you pay towards your payment plan is largely determined by your available income. Your disposable income will be determined by deducting allowed living expenses and payments on secured loans, such as your mortgage and car loan, and applying the remainder toward your payment plan. This plan will cover the following:
- Filing fee
- Commission for the bankruptcy trustee
- Attorney’s fees
- Any back alimony or child support you currently owe
- Outstanding state and federal taxes
- Wages and benefits owed to employees
- All secured debts
- A percentage of all remaining unsecured debts
The percentage of your unsecured debts that you will be required to pay off in the payment plan depends on the total value of your non-exempt property, your total disposable income, and the duration of your repayment plan.
Effectively structuring and establishing a repayment plan that works for both you and your creditors is a difficult process, but the Cedar Rapids Chapter 13 bankruptcy lawyers at Hong Law, PLC, can provide the guidance and advice you need to swiftly and effectively carry out the process. For a free consultation to discuss the details of your case, call us today at (319) 294-5853.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office