Informing Upon Chapter 13 Bankruptcy Cost

Guided by the application of the means test, the debtor proposes a payment plan, under Chapter 13 bankruptcy. Also, there has to be kept in mind that schedules commencing the case practically comprise the plan. Every creditor gets a copy of the plan or a summary, usually via mail. There may be no payment to general unsecured creditors, as a result from the means test formula.

There has to be paid attention to the fact that the pan has to be proposed in “good faith” and meet two other tests, such as best interest of creditors test, and best efforts test. At least as much on their claim as they would have gotten if the debtor filed Chapter 7 bankrupcty has to be given to unsecured creditors by the plan. Even more, an amount equal to the debtor’s monthly disposable income multiplied by 36 or by 60, has to be provided to unsecured creditors by the plan.

An important aspect which has to betaken into consideration is being represented by he fact that the first payment on the plan has to be performed by the debtor within 30 days of the filing of the plan and each month thereafter. Also, there has to be kept in mind that there are other types of Chapter 13 bankruptcy fees. One essential Chapter 13 bankruptcy cost is being represented by the attorneys’ fees which have to be paid in part before the case is filed.

Chapter 13 may be a way to pay for good legal representation over time, with the increase in attorneys’ fees for all bankruptcy proceedings necessitated by bankruptcy “reform” in 2005. Also, regarding Chapter 13 bankruptcy cost, it is important as well to be considered that the attorneys’ fees may exceed the initial fees set out at the beginning of the case, if the case is more complex or there are contests to confirmation or the allowance of a claim. It is essential to take into calculation any Chapter 13 bankruptcy cost before filing bankruptcy under Chapter 13.