Drafting a Chapter 13 Repayment Plan

Chapter 13 bankruptcy is a restructuring bankruptcy,document you can rely on. To this end, it may be very
one in which you use a portion of your income to paybeneficial to discuss your situation with a qualified,
off your debts over a set period of time. Unlike otherexperienced bankruptcy attorney.
forms of bankruptcy (such as Chapter 7), in whichWith that in mind, the following tips may be able to help
property is liquidated and the profits used to pay offyou and your family get out of debt on time and with a
debts, restructuring bankruptcy protection allows youminimum of problems:
to keep the majority of your possessions. As long as· Set realistic goals. The consequences to failing to
you keep making your payments in accordance withmeet your payments can be severe, and should be
your agreement, you will be able to keep youravoided at all costs. While you may initially think that
property.setting a very aggressive repayment plan will help you
The key to any Chapter 13 filing is the repayment planget out of debt faster, it won't help you at all if you
that you make for it. The terms of this plan willcan't keep to it.
determine how successful you will be at overcoming· But be responsible. Don't lowball your proposal to
your debt. Because of the complexity of the plan andthe point that the courts will not accept your proposal.
how important it is to you, your family, and your future,It's important to make sure that you draft a plan that
it is vital to know that you've crafted an arrangementcan repay your debts in a reasonable time period.
that is both aggressive enough to ensure that you get· Discuss your case with a lawyer. An experienced
out of debt on time, but realistic enough that you arebankruptcy attorney can help work with you to make
able to consistently make the payments.sure your needs are met and that your repayment
Because of how much is resting on the repaymentproposal will be accepted by the courts.
document, it's important that you know you have a