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West Palm Beach Bankruptcy & Business Attorneys > > Bankruptcy Attorneys > How Do I Create a Chapter 13 Repayment Plan?

How Do I Create a Chapter 13 Repayment Plan?


If you are currently contemplating a Chapter 13 bankruptcy filing in South Florida, it is important to understand the general nature of this type of bankruptcy and, more specifically, the way the repayment plan will work. Chapter 13 bankruptcy is one type of reorganization bankruptcy, which means that your assets will not be liquidated in order to repay creditors. Instead, you will work with your West Palm Beach bankruptcy attorney to create a Chapter 13 repayment plan — which typically lasts for a three to five year period — during which you will pay a regular monthly amount that will go toward repaying creditors the debt you owe. Certain creditors must be repaid in full, while others will not have to be repaid in full. Your lawyer can explain how priority creditors, and creditors connected to secured debt, will need to be fully paid through your repayment plan, while other remaining eligible debt may be dischargeable at the end of your case.

Now that you have a general sense of how the Chapter 13 repayment plan works, how do you go about creating one? Our lawyers can give you more information, and we can talk with you about the specifics of your case. Since every Chapter 13 repayment plan is based on the particular facts of a debtor’s circumstances, no two repayment plans are exactly alike.

Key Things to Consider When Planning for Your Repayment Plan 

When you are in the early process of planning for Chapter 13 bankruptcy, you will want to make note of the following:

  • Your current income, and whether you can expect your income to remain stable for the length of your repayment plan;
  • Your current assets and debts;
  • Your monthly expenses;
  • Your “priority debts” (such as family support) and secured debts (such as your mortgage or car payment;
  • Your unsecured debts (such as your medical debt or credit card debt); and
  • Your eligibility for bankruptcy exemptions listed in the Florida Statutes.

Gathering Documentation and Determining the Length of Your Repayment Plan 

Next, with help from your lawyer, you will want to gather documentation of all of the information listed above, and you will need to determine the total amount of debt that will need to be repaid, and the length of your repayment plan. The length of your plan will depend on your current income and the total amount of debt that will need to be repaid. Based on your income, you could have a plan for as few as three years, but many debtors have a five-year plan.

Submitting the Repayment Plan for Approval to the Court 

You will then work with your lawyer to craft the plan and submit it to the bankruptcy court for approval.

Contact a West Palm Beach Bankruptcy Lawyer Today 

Are you currently considering Chapter 13 bankruptcy? Whether you are thinking about Chapter 13 bankruptcy because of personal debts or debts associated with your small business that is structured as a sole proprietorship, one of the experienced West Palm Beach bankruptcy attorneys at Kelley, Kaplan & Eller can begin working with you on your case. We can speak with you today to learn more about your circumstances, can provide you with general information about drafting a Chapter 13 repayment plan that is tailored to your situation, and can work with you to get started on filing for Chapter 13 bankruptcy in the West Palm beach area.




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