Plano TX Chapter 13 Bankruptcy Repayment Plan
Bankruptcy Attorney John F. Williams, Jr. Advises on Repayment Plans to Satisfy Chapter 13 Requirements.
The Law Offices of John F. Williams, Jr. deal with the complex aspects of Chapter 13 and Chapter 7 Bankruptcy. With Chapter 7, you wipe out all debt and never repay what you owed. With Chapter 13, you work with your bankruptcy attorney to develop a payment plan to repay your creditors a certain amount of the debt owed (usually 10-20 cents on the dollar) over a 3 to 5 year period.
In order to qualify for a Chapter 13 Repayment Plan, you must meet the following criteria:
• Have a continual source of income in order to pay the pre-determined payments to the bankruptcy trustee to benefit creditors.
• Have sufficient disposable income for your monthly payments after paying your necessary living expenses.
• Fall between the acceptable limits established for secured and unsecured debts.
Assuming you meet the qualifications listed, you must also complete a financial management course (“Debtor Education”) approved by a U.S. Trustee. This is crucial in determining eligibility for a final discharge once the payment plan has been completed.
The U.S. Bankruptcy Code establishes that all secured creditors are paid first. Any remaining disposable income is used toward paying unsecured creditors. If all payments are made on time, any unsecured debt remaining at the end of the repayment plan can be discharged.
Should you be unable to qualify for Chapter 13 bankruptcy, we will determine your eligibility to file Chapter 7 bankruptcy, or other Non-Bankruptcy Options.
When you meet with me for your FREE CONSULTATION please bring (2) credit reports, a list of all your expenses and income, and statements from any other debts you have that don’t appear on the reports. This will help me evaluate your income and finances to determine if Chapter 13 is a feasible option.
The Law Offices of John F. Williams, Jr. are your legal advocates throughout the entire bankruptcy process. From the initial filing of your bankruptcy petition to the 341 creditor meeting and discharge, we represent you and protect your interests.
