A Good Way Out of a Bad Situation

If you have chosen to file for Chapter 13 bankruptcy, hiring a bankruptcy attorney to represent you can prove vital to the success of your case. This is because, in addition to representing you in court, this attorney will complete several tasks that can ultimately determine the outcome of your case. You can learn more about these three vital tasks below.

#1: Draft The Proposed Payment Plan And Submit It To The Court

As part of a Chapter 13 bankruptcy case, you will be required to repay as many of your debts as possible while still fulfilling your current financial obligations. In order to determine how much you should have to pay each month, you will be required to submit a proposed payment plan to the court for approval. This proposed plan will need to be based on your current income level and seek to pay off as much of your debt as possible. It is very important that you are able to complete the plan you submit once it is approved by the court. A failure to complete this plan will result in your bankruptcy case being dismissed. That is why it is always best to hire a bankruptcy attorney to draft and submit this plan on your behalf. 

#2: Collect And Distribute Monthly Payments

Once the judge for your case has accepted your proposed payment plan, you will need to begin making monthly payments to your creditors as required under your payment plan. A failure to make payments in full or on time can result in your bankruptcy petition being denied. In order to ensure all payments are made properly in accordance with the court order, your bankruptcy attorney will collect one payment from you each month for the total amount due. Your attorney will then distribute this money to each individual creditor as required by your payment plan. Your attorney will also maintain a record of all these payments so that the record can be supplied to the court as proof of compliance. 

#3: Petition To Have The Remaining Eligible Debts Discharged

There will still be debts remaining after your payment plan has come to an end. If you have completed your payment plan as directed by the court, your bankruptcy attorney will be able to petition the court to have these remaining debts discharged. While not all debts will be eligible for discharge under bankruptcy laws, you will find that successfully petitioning the court for this debt relief can eliminate a large portion of any remaining debt that you have and provide you with a financial fresh start. 

Contact a bankruptcy attorney for more information.