Archive for September, 2010

Doing a Chapter 13 Plan

Friday, September 3rd, 2010

Doing a chapter 13 bankruptcy plan requires more than simply preparing a budget that includes payments that you would prefer to make to creditors.  Debtors who are thinking about seeking bankruptcy relief should carefully evaluate their financial situation and related law to make sure that they qualify for debt relief under prevailing bankruptcy laws.  While many debtors experiencing financial difficulties often express interest in filing for bankruptcy, they may not really understand the requirements for doing so.  Debtors who sincerely want to pursue debt relief should have a proper bankruptcy evaluation which would include undergoing the bankruptcy means test.  This test acts as an instrument in determining a person’s ability to file a bankruptcy under the law.  Debtors should also understand that even if they do qualify for bankruptcy relief they will have certain responsibilities in doing so including a duty to be willing to be under supervision of the bankruptcy court, establish a payment plan that is approved by the court, follow the Chapter 13 plan, make regular payments according to the plan and follow all bankruptcy requirements.  By doing all the right things in bankruptcy debtors get the advantages of bankruptcy including upon completion of the plan’s payments a discharge of any remaining dischargeable debt by the court.

 The brief description of a chapter 13 plan above does not include all of the requirements for qualification for filing bankruptcy.  Nor does it cover all of the advantages and potential down sides in doing so.  All Chapter 13 considerations must be carefully weighed by a debtor desiring declaring bankruptcy.  Because the evaluation of a debtor’s situation is so important in considering bankruptcy it is very useful to have the help of an experienced twin cities bankruptcy lawyer.  Debtor’s can present their financial situation to a twin cities bankruptcy lawyer who can consider various issues to help determine whether bankruptcy is a viable option for debt relief.  .

The forgoing is general information only.  It was not meant as legal advice nor is it legal advice.  This posting does not establish any attorney-client relationship. 

 We are a debt relief agency.  We help people file for bankruptcy.