Two main factors come into play in determining how much the payments will be. The Debtor’s disposable income and the nonexempt equity in the Debtor’s property.
Who sets the payment amount for a Chapter 13 repayment plan?
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Personal Bankruptcy
BANKRUPTCY INCOME LIMITS INCREASE ON APRIL 1, 2023
the court wants to see if the person filing bankruptcy has the means to pay something back to the creditors. To do this, the court compares the debtors income to the average income of a family the same size as the debtor that lives in the same state as the debtor
Increasing Bankruptcy Expense Limits Under the Means Test
Even if your income and expenses, with this add-on, still results in the need to file a chapter 13 and pay something to your creditors, your payments will be less than they would have been
Requirements for Filing Chapter 13 Bankruptcy
Chapter 13 is an extremely helpful way to protect assets such as save your home from foreclosure by paying mortgage arrears over time, reducing what is owed on a car and reducing debt in general, among other things.
WHERE YOU LIVE CAN IMPACT THE TYPE OF BANKRUPTCY YOU CAN FILE
Where you live can impact the type of bankruptcy you can file. That is because several years ago, Congress determined that in deciding whether a debtor can wipe out their debt entirely or must pay some of the debt back, there should be more focus on a debtor’s income
The pros and cons of credit cards and bankruptcy
Credit cards can have a major impact on both the need to file bankruptcy and your ability to improve your credit score after bankruptcy.
Can bankruptcy help with student loans?
It should be noted that Chapter 7 and Chapter 13 bankruptcy doesn’t generally discharge Student loan debt, although there are exceptions for Undue Hardship. In addition bankruptcy can impact certain private student loans. Chapter 13 can also be used to hold off on student loan collection during the five year chapter 13 plan.
McDowell Law Equal Justice Award
Your knowledge and experience with Chapter 13 and Chapter 7 benefitted your clients
What happens if you miss a Chapter 13 bankruptcy payment?
if you have a legitimate financial emergency that prevented you from paying, the court typically will allow you time to catch up or restructure your payments
Bankruptcy after a divorce may help gray divorcees
Sometimes, going through your divorce first is the right option, so that you can see if you end up with debts that you may have shared with your spouse or that your spouse created in their own name while married. The financial devastation that a divorce can cause is hard to recover from at such a late age, but a bankruptcy could offer a helpful solution.
