Repaying Debt After Chapter 13

If you would like to file for Chapter 13 bankruptcy then you might be wondering how much you will have to pay.

In short, you must create a repayment plan to pay certain debts in full. A Chicago bankruptcy lawyer can explain which of your debts are "priority debts" when he or she helps you create a repayment plan. These debts will be given priority in your Chapter 13 bankruptcy filing and may eliminate some of your lesser debts. Debts that jump to the head of the line include child support payments and back taxes.

After your priority debts there are secured debts that are more likely to be included in the repayment plan. These include items like home or car payments that must be included. If you have fallen behind on any of these commitments then you need to include these late payment obligations as well.

Finally, you must show whether there is any disposable income after making payments on your secured debts. This money will be used to make payments on unsecured debts. While you may not be required to make any payments on unsecured debts if you do not have disposable income, you should show a good faith effort to intend to repay these debts when you can.

Don't let the many rules and loopholes of bankruptcy law scare you, contact our law firm today to get help!