Filing for bankruptcy may seem like you’ve hit the end of your rope, but it does not need to be scary. When you have the right help, filing for chapter 13 bankruptcy in McKinney, TX is an attainable goal instead of an overwhelming situation. There are five things to know about your repayment plan when you file for chapter 13 bankruptcy:
- Some things must be paid off in full. You must pay back certain fees and claims 100%. Knowing what you need to pay off will help you prioritize your payment plan. You need to pay bills such as administrative claims, filing fees, and attorney fees in their entirety. You must also pay in full all child support, wages to employees, and most tax debts.
- Repayment of unsecured debts varies. Depending on your situation, unsecured debts may not need to be paid off. Payment requirements depend on many factors, including the value of your property, the amount of disposable income you have, and the length of your payment plan. Having a personal bankruptcy advisor in McKinney can help you to distinguish what debts to pay in full.
- Use all disposable income. You must use all of your disposable income to maximize your payments, pay all your debts and dig yourself out of bankruptcy. Debts your leftover income may go to include credit card bills, debit card bills or medical bills. Disposable income, though, should be noted as the money left over after paying off expenses such as car loans or mortgages.
- The length of repayment may vary. Each case and situation are different. Repayment plans will vary in length depending on your income level. If your median income is greater than the average monthly income for your house, the repayment plan for you must last five years. Otherwise, having an income less than the median average will require a plan lasting three years.
- You may keep your property. Unlike filing for a chapter 7 that surrenders your home, filing for chapter 13 bankruptcy in McKinney means that you can keep your property. Repayment happens solely from your leftover income instead of your property value. However, you must pay creditors at least the value of said property to complete the repayment option.
Figuring a repayment plan after filing for chapter 13 bankruptcy can be feasible with the right mindset and the right help. If you need assistance financially, let Collins & Arnove help you get your life back. To learn more, call 972-516-4255 or visit https://www.northtexasbankruptcy.com/.
Collins & Arnoe | Chapter 13 Bankruptcy McKinney, TX | 972-516-4255