The Required Payment Plan for Chapter 13 Bankruptcy
The Required Payment Plan for Chapter 13 Bankruptcy
Florida bankruptcy law demands a person applying for a Chapter 13 Bankruptcy to submit an adequate payment plan. When filing for a Chapter 13 bankruptcy you should meet with a Tampa bankruptcy attorney for assistance preparing the payment plan. The payment plan details how the money the borrower collects will be used to pay off the debts outstanding. Normally, a borrower must begin submitting payments as defined in the chapter 13 payment plan within 30 days of submitting the plan. The debtor will be required to forward the payments directly to the bankruptcy trustee. The trustee will then disburse the payments to the applicable creditors. The trustee is required to send the funds to the creditors according the approved chapter 13 payment plan. A competent Tampa bankruptcy lawyer will be in constant communication with the trustee to ensure payments are made according to the payment plan.
A chapter 13 payment plan may be accepted or rejected by a creditor whose debt owed by the borrower is part of the bankruptcy proceedings. In addition, a party of interest could also object to the chapter 13 payment plan. A party of interest is one who the judge rules is likely to be affected by the borrower's chapter 13 payment plan. The payment plan is vital to completing a successful chapter 13 bankruptcy and you should seek the counsel of an experienced Tampa bankruptcy attorney. The chapter 13 applicant bears the burden of proving his ability to make the payments described in the payment plan. The debtor has to provide the court with evidence verifying both the regularity and stability of the income that will be used to pay the debts according to the payment plan. Normally, a payment plan is required to provide for payments that will pay the balance owed in full within three years; however, a bankruptcy court does have authorization to augment the period to 5 years.
Our Tampa bankruptcy attorneys could help you create a satisfactory payment plan and file for a chapter 13 bankruptcy. A knowledgeable Tampa bankruptcy lawyer could successfully negotiate with your creditors to lower the balance owed on your debts to construct a satisfactory payment plan. Call us now for a free consultation with one of our experienced Tampa bankruptcy lawyers.