The Chapter 13 Repayment Plan

New York Chapter 13 Bankruptcy Attorney

Under Chapter 13 of the U.S. Bankruptcy Code, a New York debtor has the option to pay off a portion or all of his or her debt with a repayment plan. This plan enables you to pay creditors in regular installments over a 3 to 5 year time period. During the entire duration of your repayment plan, you will be protected from all debt collection activity. Typically, when you file a Chapter 13 bankruptcy you will need to file a proposed repayment plan as well. Or, this can be filed within 15 days of your bankruptcy petition.

The Chapter 13 repayment plan must be approved by the court in order to move forward with scheduled payments, which will generally be paid weekly, bi-weekly or monthly to the bankruptcy trustee, who will distribute money to creditors accordingly. A debtor's first payment will be due 30 days after filing his or her plan, even if the plan has not yet been approved or disapproved by the court.

How Much Money Will I Be Required to Pay?

The amount of money that debtor will be required to pay under his or her repayment plan will vary depending on his or her "disposable income." This income is calculated based upon the debtor's income versus necessary expenses.

Contact a New York Bankruptcy Lawyer

Having the guidance and legal representation of a lawyer experienced with Chapter 13 bankruptcy payment plans in New York is crucial to the successful resolution of your case. A lawyer can not only help you in establishing a repayment plan that works but can also help you properly file all your paperwork with the court, including information about your income and expenses.

To learn more about paying off your debt with a Chapter 13 bankruptcy, contact a New York bankruptcy lawyer at our firm today.