Creve Coeur, Missouri Chapter 13 Bankruptcy Attorney Helps Clients Keep Their Property
Missouri Chapter 13 Bankruptcy Law Firm Focuses on Reorganization
When an individual files a chapter 13 bankruptcy petition with the appropriate Missouri court, he must file a repayment plan with the petition or within 14 days after the petition is filed. The repayment plan outlines how he plans to repay his outstanding debt.
The repayment plan must be approved by the court and provide for fixed-amount payments to the chapter 13 bankruptcy trustee on a regular basis – biweekly or monthly. The trustee has the responsibility for distributing the funds to creditors according to the terms of the repayment plan, which may pay creditors claims in full or in part.
Types of Claims
There are three types of creditor claims:
- Priority – those granted special status by the bankruptcy law, including most taxes and the costs of the bankruptcy proceeding itself
- Secured – those for which the creditor has the right to take back certain property (collateral) if the debtor does not pay the debt, including home mortgages and automobile loans
- Unsecured – those for which the creditor has no special rights to collect against property owned by the debtor, including credit card debt
The repayment plan must pay priority claims in full unless a priority creditor agrees otherwise, or in the case of a domestic support obligation, unless the debtor contributes all disposable income to a five-year plan. Disposable income is income (other than child support received) less amounts reasonably necessary for the maintenance and support of the debtor or dependents, less charitable contributions up to 15 percent of the debtor's gross income.
Chapter 13 bankruptcy is a complex undertaking, but attorney James B. Day has the experience necessary to help you develop a reorganization plan that will help you keep your hard-earned property and give you the time you need to get your finances back on track. Contact The Law Office of James B. Day, LLC online or call 314-786-1218 to schedule your free, no-risk initial consultation today.
