Katy Chapter 13 Repayment Plan Attorney
For many debtors who are unable to effectively manage a variety of sizable debts but still have access to steady income, Chapter 13 bankruptcy is an attractive option which allows the filer to consolidate all of their debt into one monthly payment managed by a court-appointed official. This repayment plan is the key element of any Chapter 13 bankruptcy plan and must be carefully constructed to ensure that you will be able to make the payments stipulated in the plan faithfully. This will allow you to retain your possessions and potentially discharge a large portion of your debt following the completion of your plan.
Creating an effective and manageable payment plan is an essential part of successfully capitalizing on the opportunities provided by Chapter 13 bankruptcy. Therefore, it is essential that you have skilled legal guidance before you move forward. To learn more about your debt relief options, call an experienced Katy Chapter 13 repayment plan attorney at the Russell Van Beustring P.C., today at 713-973-6650.
Paying Your Debts
Should your repayment plan be accepted by the court, all of your debts will be consolidated and you will only be required to make one monthly payment to the court-appointed officer controlling your bankruptcy proceedings. This official will determine what increment of your payment is distributed to your various creditors based on a system of priorities that ensures secured debts are repaid first. While significant amounts of debt may be discharged at the completion of a plan, the following secured debts must always be paid in full by any Chapter 13 plan:
- Attorney and filing fees
- Secured debts such as car loans, mortgages, and any debt backed by real property
- Salaries and wages owed to employees
- Child support and alimony
After the period of your repayment plan is complete, usually in 3-5 years, any remaining debt will likely be discharged by the court and you will be starting on a fresh financial path.
If you are suffered from overwhelming debt and being hounded by creditors for payments that you are unable to make, you may be able to use your current income to pay all of your debts off through Chapter 13 bankruptcy. For a free consultation to learn more about the details of filing, call a Katy Chapter 13 repayment plan lawyer from the Russell Van Beustring P.C., today at 713-973-6650.