Therefore, if you have a lot of non-exempt assets, you would need to account for this in your plan. LIQUIDATION ANALYSISĪn important bankruptcy requirement it that you must pay out at least as much in the Chapter 13 Plan as your creditors would have gotten if you filed a Chapter 7 case. We calculate this for individuals at the time of their initial consultation in most cases. 13 is very tricky and is one of the reasons you need the assistance of an experienced bankruptcy attorney. Assessing the amount you will pay in a Ch. If your current budget shows you can afford to pay more than that amount, the Trustee in your case will seek to have your payment amount increased (if you are paying less than 100% of your unsecured debts through the plan). Surplus income is all income received by the Debtor and his or her spouse that is not reasonably necessary for the support of the Debtor and the Debtor’s dependents. (Certain obligations including long-term secured liabilities such as home mortgages, may or must be paid outside of the plan.)ĪMOUNT OF PLAN PAYMENT – The amount of the plan payment is an amount equal to all of the surplus income of the Debtor and the Debtor’s spouse. The Debtor must make a single monthly plan payment to the bankruptcy trustee throughout the duration of the plan, and the bankruptcy trustee distributes the plan payment among all of the Debtor’s Creditors in amounts and priorities specified in the plan. The Debtors and their attorneys formulate the repayment play Chapter 13 is a Section of the Bankruptcy Code which enables qualified individuals and small business owners to retain their assets and consolidate all or a portion of their debt under a Chapter 13 Plan payable over three to five years.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |