Chapter 13 Bankruptcy in Fairfield OH: Common Factors That Determine Your Repayment Plan Period
Most people who file for bankruptcy usually have no income sources and cannot pay off their debts. However, if you have a regular source of income, you can file for Chapter 13 Bankruptcy in Fairfield OH, which allows you to propose a personal financial reorganization plan to the court. This plan is meant to give you time to pay off your debts within a certain period, commonly three to five years.
The Chapter 13 bankruptcy code provides the basis for paying your creditors such as determining the maximum duration your repayment plan may take, and the value of your property among others. There are several factors that determine your repayment plan period and the amount of money you should pay your creditors on a monthly basis.
Your disposable income
Disposable income is the amount of money that remains after paying for your basic needs and supporting any business that you own. The larger the disposable income, the shorter the repayment plan period and the higher the amount of money to pay off in a month.
Also, if your income is less than the median income for a similarly-situated household as stipulated in bankruptcy laws, your repayment period may be longer than when you earn more.
The type of debt you have
There are several types of debts which include priority debts, general unsecured claims, secured and unsecured loans and priority unsecured claims amongst others. These types of debt greatly determine how your repayment plan should be executed. For example, priority debts such as spousal and child support cannot be discharged and must be paid off before your repayment plan period ends.
Your non-exempt property
Non-exempt property is any item that is determined by the court as not a necessity for sustenance of modern life such as jewelry, and expensive musical instruments unless you are a musician. If the value of your non-exempt property is very high, then your repayment plan period may also reduce and thus your monthly pay offs to your creditors increases.
If you intend to file for bankruptcy, Contact R. Dean Snyder Attorney to help you file for Chapter 13 Bankruptcy in Fairfield OH.