When you file for a Chapter 13 bankruptcy, you are given a finite amount of time in which to submit a repayment plan with the court and for your creditors. While many file the repayment plan with the petition for Chapter 13 bankruptcy, you are given 15 days in which to file, provided you are not requesting an extension in which to do this.
What the plan should include is:
- Amount regularly paid, typically either monthly or biweekly.
- The creditor distribution of that paid money.
- The amounts to pay off creditors, and this can be less than what is owed.
As long as the amount to pay off creditors is agreed to by the court and the creditors alike, you may now have a real solution to your personal financial crises. The terms outlined in the plan, once agreed upon and approved by the court, bind the creditor and debtor. The debtor is now required to live on a limited and fixed budget and should avoid incurring any additional expense as it may conflict with the trustees ability to make timely payments to creditors if the debtor is not making the obligatory and routine payments set about in the petition and ordered by the court.
If you have questions regarding the processes and the exemptions you may keep when entering into a Chapter 13 bankruptcy, a Florida bankruptcy attorney may be well-versed in answering your questions and ensuring you have the best plan in place based on your needs and special desires. Living in debt can be debilitating and while living on a limited budget may be a struggle, it will allow you to know you are on a good track and are improving your future.