subject: Creating The Chapter 13 Bankruptcy Payment Plan [print this page] Creating The Chapter 13 Bankruptcy Payment Plan
Florida Bankruptcy Law mandates that a borrower applying for a Chapter 13 Bankruptcy file an adequate payment plan. The payment plan portrays how the money the borrower obtains will be used to pay off the debts owed. Once the payment plan is confirmed by the court it will bind the debtor and each creditor included in the plan. To protect from being bound to a payment plan which is too burdensome a borrower should seek the assistance of a qualified Tampa bankruptcy attorney.
Typically, a debtor must begin making payments as outlined in the chapter 13 bankruptcy payment plan within 30 days of putting forward the plan. The borrower must make the predetermined payments to the bankruptcy trustee either directly or through an automatic payroll deduction for the full duration of the plan. Judicious consideration must go into composing the payment plan to guarantee the debtor can adjust to the stern monthly payments. Typically, the payment plan will force the debtor to become adjusted to living on a fixed budget for a lengthy period of time. In addition, the borrower will not be allowed to incur any new debt without first getting the approval of the chapter 13 bankruptcy trustee. It is important for the Tampa bankruptcy lawyer to work intimately with the creditors, debtor, and court to create a payment plan that all parties could be pleased with.
A qualified Tampa bankruptcy attorney will describe the chapter 13 bankruptcy payment plan to the debtor in detail and counsel the debtor of the probable consequences that can arise if all of the scheduled payments are not made. For example, a experienced Tampa bankruptcy lawyer should notify his client that failure to make the scheduled payments could result in a dismissal or conversion to a Chapter 7 Bankruptcy. A Chapter 7 Bankruptcy will result in a liquidation of the debtor's assets, which could have a damaging affect.
If you are struggling with debt and could benefit from help contact Florida Law Group to speak with one of our trained Tampa bankruptcy lawyers. Our group of Tampa bankruptcy attorneys will answer all of your questions and supply you with trustworthy legal advice.
