Skip to Content
Call Us For A Free Consultation 718-340-3385

Why You Need to Be Careful With Your Chapter 13 Bankruptcy Plan


At the Law Office of Seni Popat, P.C., we understand that dealing with debt can be an overwhelming struggle for some people. That is why we have dedicated our efforts to using our extensive knowledge of the law to guide clients through each phase of the bankruptcy process so they can secure the relief they need from debts that keep holding them down.

One of the most common bankruptcy cases we handle at our firm is Chapter 13. And while filing for this type of bankruptcy can get you started a path to rebuild your finances, there are a few things you need to be aware of regarding the repayment plan. Keep reading to find out what to look out for when you file for Chapter 13 bankruptcy.

What Is the Chapter 13 Repayment Plan?

When you set up your repayment plan for a Chapter 13 bankruptcy, the bankruptcy judge will sign an Order of Confirmation. This order establishes how much you have to pay each month to settle your debts. The payment plan is generally a set amount that is multiplied by the number of months stated in the agreement.

For example, a plan might say that the debtor has to pay $300 a month for 60 months. After the debtor pays back the entire $18,000 at the end of their payment plan, they will be able to obtain a Discharge of Debtor Order. However, some debtors end up finding out that they owe more than they thought at the end of the payment plan.

Issues that Can Impact Your Repayment Plan

There are several events that can occur after you file your bankruptcy petition that can increase the amount you have to pay before you can receive a Discharge of Debtor Order. For example, if you agree to a plan that has a guaranteed base payment to creditors, additional claims for legal fees and other post-petition matters will drive up the amount you have to pay before the court will award the discharge. This is why it is crucial to consult with an experienced bankruptcy lawyer to assess your prepayment plan to determine if you are vulnerable to additional claims from creditors and other parties.

Speak to an Experienced Bankruptcy Lawyer Today

Our legal team has seen firsthand how bankruptcy can change a person’s life for the better. Our goal is to explain all of your options under the law so that you have a full understanding of the advantages and disadvantages of filing for bankruptcy. When you choose our firm to represent you, you can trust that we will use our extensive resources to defend your best interests.

Are you considering filing for bankruptcy? If so, get in touch with the Law Office of Seni Popat, P.C. today to request your free case consultation. We are committed to serving clients throughout Queens and the surrounding areas.