Creating a Chapter 13 Bankruptcy Plan

Bankruptcy is often the only way that an individual can get away from his debts and get a handle on his life once again. By making a Chapter 13 bankruptcy repayment plan, individuals, families, companies and corporations can restructure their debt and pay back some of the debts they owe, while keeping their assets. Debt can keep you from reaching your potential and can be very scary, but bankruptcy can help you gain control and get back on track.

Understanding a Chapter 13 Bankruptcy Plan

Chances are, if you have some assets you don't want to lose, but are completely in debt and have no way to be able to pay it off as is, a repayment plan through bankruptcy is the right plan for you.

A Chapter 13 bankruptcy plan can help you if your financial setbacks have been short-term, including medical bills, unemployment, or unplanned, necessary expenses that have taken you over the edge. This type of bankruptcy is perfect for individuals who have regular income and who can rely on their job, but who have fallen behind on bills or are unable to pay them since they are so large. This is also perfect for homeowners since it can help you keep your property as you go through the legal plan.

How to Create Your Plan

There are several steps to creating your repayment plan:

List your creditors and the amount due
Determine what your income is and how much of that income is disposable and able to be used towards debt repayment
With the help of your attorney, the court and a trustee, establish a plan under which you restructure your credit card debt and pay back a portion of it. Payments will generally be made to your trustee, who will apportion that money to your various creditors
The repayment plan will typically last for between 3-5 years from the time of bankruptcy. At the end of the 3-5 year period, any remaining debt will be discharged and you will have a clean financial slate.

Getting Help

Your best bet would be to speak with an attorney who can help you assess your problems, help you formulate your repayment plan, and help you file the proper paperwork for your Chapter 13 bankruptcy. Although making a bankruptcy payment plan can be stressful, it will help you be trusted by creditors once again and can help you make a financial turnaround that can change your life and quality of living for the better.

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