When it comes to filing for Chapter 13 Bankruptcy in West Palm Beach, there are a number of procedures to be followed and eligibility to be determined before qualifying for it. Chapter 13 Bankruptcy, also known as the reorganization bankruptcy, involves pay back of all debt payments over a period of three to five years; however, one gets to keep his/her property.

Once you are deemed eligible to file Chapter 13 bankruptcy, it is essential to receive credit counseling from an agency that is approved by the United States Trustee Office. If in case you cannot afford to pay the counseling fees, you are applicable to reduced fee or free of charge services. However, you will have to pay the filing fee and file a specific packet of forms yourself.

Chapter 13 Repayment Plan

The main component of the Chapter 13 bankruptcy plan is the repayment plan. Since there is no predefined official repayment plan form, getting a reliable bankruptcy lawyer will help you come with a feasible plan that will explain all the details on how you will pay back your debts.

Court costs of Chapter 13 bankruptcy are about $271 in addition to a filing fee of $325 and $39 of administrative fees. These payments can also be made in installments over a period of 120 days. Failure to pay the installments amount can result in dismissal of the case.

How Much You Need To Pay For

In Chapter 13 bankruptcy, debts can be broadly classified in three ways.

Priority Debts

These are the debts that need to be paid in full and are basically at the top of the repayment plan. The priority debts include alimony, child support, wages you owe and some tax obligations.

Secured Debts

The plan must also include a plan for regular repayments of secured debts. The secured debts include mortgages, car loans, etc.

Unsecured Debts

Once the above repayment plans have been set, the remaining amount is used to repay for unsecured debts, such as healthcare bills, credit cards, etc.

Length of the Repayment Plans

Depending on your earnings post the bankruptcy, you can assess how long your repayment plan will last. There are criteria’s that are pre-established according to ones monthly earnings and the lower the earnings amount, the greater the length of the repayment plan.

When it comes to the effective filing of Chapter 13 Bankruptcy, consider hiring a bankruptcy lawyer from the Walker Law firm in West Palm Beach and get all the guidance you need! Feel free to call us at 561-689-1512 and we’ll be happy to be of assistance!