Fargo Chapter 13 Attorney

Proposing Your Repayment Plan

The key part of Chapter 13 bankruptcy is the repayment plan, which you will propose to your creditors and the bankruptcy court. Your creditors and your court-appointed bankruptcy trustee may either accept or object to your plan, but upon making satisfactory changes the court will officially approve your plan at the final confirmation hearing. 

The court will likely confirm your plan if it meets the following criteria:

• It is feasible for you to complete the plan (pay back the creditors as planned).
• You proposed the plan in good faith.
• The repayment plan complies with bankruptcy law.

The plan should cover your debt repayment strategy over 3-5 years. Most plans actually allow debtors to pay less than the amount owed, which is why Chapter 13 is a favorable option if you have the time and capability (disposable income). Some debts you can expect to pay back include priority debt (e.g., child support, alimony arrearages, and tax obligations), secured and unsecured debt, and the value of your nonexempt property if you want to keep it.

What Happens After Chapter 13 Is Paid Off?

At the conclusion of the repayment period, your remaining debts will be discharged. In general, you cannot pay off your Chapter 13 repayment plan earlier than planned unless you can pay back your creditors in full.

Is Chapter 13 Worth It?

The decision on whether filing for Chapter 13 bankruptcy is worth it largely depends on individual circumstances.

On the positive side, Chapter 13 can be beneficial for those with a steady income who wish to keep their assets such as homes or cars. It offers the opportunity to repay debts in a more manageable way and provides protection from creditor harassment. This form of bankruptcy might be a viable solution for individuals who do not qualify for Chapter 7 but still have assets they want to protect.

However, Chapter 13 isn't without its downsides. It's often seen as an expensive endeavor that could potentially offer no lasting debt relief. The process can also negatively affect your credit score and stay on record for several years. Furthermore, it might not be the best choice for people who aren't in good financial shape despite the allure of no money down and extended payments.

To understand if filing for Chapter 13 will be worth it for you, it is crucial to carefully evaluate your financial situation and consult with a professional before making the decision. Get in touch with The Dakota Bankruptcy Firm by dialing (701) 394-3215.

Speak With a Chapter 13 Bankruptcy Lawyer in Fargo

A Fargo Chapter 13 attorney at The Dakota Bankruptcy Firm can better help you navigate the bankruptcy process, from filing your initial petition to creating a viable repayment plan that meets your and your creditors’ needs. You can also obtain several significant protections by filing Chapter 13, such as avoiding foreclosure and creditor harassment, so it is in your best interests to discuss this option with an experienced Chapter 13 lawyer in Fargo, ND.

Contact The Dakota Bankruptcy Firm for a free consultation to learn more about your options. Call our Fargo Chapter 13 bankruptcy lawyers in North Dakota at (701) 394-3215.