As in Chapter 7, a key issue is the means test. If your income is below median, Chapter 13 requires you to pay your actual disposable income over three years. If your income is above median, you will either pay your actual disposable income over five years or the means test number, whichever is greater.
Bankruptcy Repayment Plan
Chapter 13 is intended to provide unsecured creditors with some repayment. You will be required to pay what you can afford to pay on a monthly basis for the length of your plan, or your debt in full, whichever is less. All such payments to unsecured creditors are at 0.00% interest, with no late charges or other fees. They are only entitled to the balance owed at the time of filing, or what you can afford to pay, whichever is less. Finally, you must pay your unsecured creditors at least what they would have received had you filed Chapter 7.
Speak with an experienced bankruptcy lawyer to determine the payment amount and length of time you will be required to pay. Matt Nahrgang has been practicing law in this area for 20 years, has appeared numerous times on the radio show Legal Perspectives, and was voted Best Bankruptcy Attorney for 2006 in the Main Line Times.
Clients find us to be friendly, accessible, knowledgeable and professional. We enjoy a high percentage of return clients and referrals from former clients, local law firms and accountants.
Call for a Free Initial Consultation
Contact Nahrgang & Associates, P.C., in Collegeville, Pennsylvania today to discuss your bankruptcy or family law questions. You can reach us by toll free phone at 888-773-6714 or via e-mail. We will respond promptly to all phone calls and e-mails, usually within 24 hours.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
