How do I know if I will be in a three, four, or five year plan in my Chapter 13 Florida Bankruptcy?
The answer depends on a few different factors. As mentioned in prior posts, a chapter 13 plan is a plan devised by the debtor or debtor's attorney that takes into consideration all living expenses and income. The debtor will have to go by IRS guidelines though and will most likely have caps on certain expenses.
After taking everything into consideration, the debtor will come up with a percentage of what to pay pack unsecured creditors and propose a plan to the bankruptcy court and Trustee. If they believe the plan is fair and there are no creditor objections, the plan will be approved and confirmed. If the debtor(s) are over the median income level for the state of Florida, they must propose a 60 month (five year) plan.
If the debtor(s) make less than the median income, they may propose less than a 60 month plan. Usually, the shorter the duration of the plan, the higher the plan payments and vice versa.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
