Lakewood, Colorado Chapter 13 Plan is a specific legal option available to individuals residing in Lakewood and seeking debt relief under the United States Bankruptcy Code. In this plan, individuals who have a regular income but are struggling with overwhelming debt have the opportunity to reorganize their finances and create a manageable repayment plan. Under the Chapter 13 Plan, individuals propose a repayment plan to the bankruptcy court, which outlines how they will systematically pay off their debts over a period of typically three to five years. This plan aims to allow individuals to keep their assets while repaying their debts in a more structured and affordable manner. The Lakewood, Colorado Chapter 13 Plan is particularly beneficial for individuals who want to protect their homes from foreclosure or keep important assets that might otherwise be at risk in a Chapter 7 bankruptcy, where liquidation of assets is generally required. It is important to note that the Lakewood, Colorado Chapter 13 Plan is suitable for individuals with a regular source of income, as it requires them to make regular payments to a court-appointed trustee who then distributes the funds to creditors according to the repayment plan. However, individuals must also ensure that their repayment plan is realistic and within their financial means, as it will heavily impact their ability to successfully complete the Chapter 13 bankruptcy process. There are various types of Chapter 13 plans that individuals can choose from under Lakewood, Colorado law. Some of these plans include: 1. Traditional Chapter 13 Plan: This is the most common type of Chapter 13 plan, where individuals propose a repayment plan based on their disposable income. Disposable income refers to the amount of money left after covering necessary living expenses. 2. Cram down Plan: This type of plan is applicable when an individual owes more on a secured debt than the collateral securing the loan is worth. In an Arm down plan, the individual can propose to reduce the balance owed on the secured debt to the current value of the collateral, potentially resulting in lower monthly payments. 3. Lien Stripping Plan: In situations where an individual has multiple mortgages or liens on a property, a lien stripping plan can be proposed. This plan allows individuals to remove junior mortgages or liens from their property, effectively reducing their overall debt burden. 4. Equal Monthly Payment Plan: This plan is structured based on dividing the total debt amount equally over the designated repayment period. It provides a predictable repayment schedule for individuals who prefer consistent monthly payments. The specific type of Lakewood, Colorado Chapter 13 Plan that individuals choose will depend on their individual financial circumstances and goals. Consulting with an experienced bankruptcy attorney is highly recommended ensuring the appropriate plan is chosen and to navigate the complexities of the Chapter 13 bankruptcy process effectively.