This form, a Chapter 13 Plan, is for use in a federal bankruptcy proceeding in the designated state and district. Available in Word or pdf format.
The Wilmington North Carolina Chapter 13 Plan is a legal proceeding that allows individuals in financial distress to reorganize their debts and establish a manageable repayment plan. This plan is available for residents of Wilmington, North Carolina, who qualify under the guidelines set by the United States Bankruptcy Code. Chapter 13 bankruptcy is often chosen by individuals who have a regular income but are unable to meet their financial obligations. It offers a structured approach to debt repayment, enabling debtors to retain their property while repaying their creditors over a period of three to five years. Under the Wilmington North Carolina Chapter 13 Plan, debtors must submit a detailed proposal to the bankruptcy court, outlining their income, expenses, debts, and a plan for repayment. This plan is formulated based on the individual's ability to pay and must be approved by the court. Once approved, debtors are required to make regular monthly payments to a bankruptcy trustee, who then distributes the funds to creditors according to the approved plan. The Chapter 13 Plan in Wilmington, North Carolina, allows individuals to address various types of debt, including credit card debt, medical bills, personal loans, and even some tax obligations. By restructuring these debts, debtors can potentially lower interest rates, eliminate penalties, and develop a more feasible repayment schedule. Different types of Chapter 13 Plans in Wilmington, North Carolina, include: 1. Traditional Chapter 13 Plan: This is the most common type, where the debtor proposes a plan based on their disposable income and the value of their assets. 2. Zero Percent Plan: In some cases, debtors may propose a plan where unsecured creditors receive no repayment. This could be applicable when the debtor's income does not allow for any additional payments over essential living expenses. 3. Cram down Plan: This plan allows debtors to reduce the principal balance on certain secured debts, such as car loans or mortgages, to match the fair market value of the collateral rather than the amount owed. 4. Partial Payment Plan: Debtors who cannot afford to repay all of their debts may propose a plan where creditors receive only a percentage of what they are owed. This is often a feasible option when the debtor's income is limited. It is essential for individuals considering the Chapter 13 Plan in Wilmington, North Carolina, to consult with a qualified bankruptcy attorney who can guide them through the intricacies of the process and help determine the best plan for their specific financial situation.
The Wilmington North Carolina Chapter 13 Plan is a legal proceeding that allows individuals in financial distress to reorganize their debts and establish a manageable repayment plan. This plan is available for residents of Wilmington, North Carolina, who qualify under the guidelines set by the United States Bankruptcy Code. Chapter 13 bankruptcy is often chosen by individuals who have a regular income but are unable to meet their financial obligations. It offers a structured approach to debt repayment, enabling debtors to retain their property while repaying their creditors over a period of three to five years. Under the Wilmington North Carolina Chapter 13 Plan, debtors must submit a detailed proposal to the bankruptcy court, outlining their income, expenses, debts, and a plan for repayment. This plan is formulated based on the individual's ability to pay and must be approved by the court. Once approved, debtors are required to make regular monthly payments to a bankruptcy trustee, who then distributes the funds to creditors according to the approved plan. The Chapter 13 Plan in Wilmington, North Carolina, allows individuals to address various types of debt, including credit card debt, medical bills, personal loans, and even some tax obligations. By restructuring these debts, debtors can potentially lower interest rates, eliminate penalties, and develop a more feasible repayment schedule. Different types of Chapter 13 Plans in Wilmington, North Carolina, include: 1. Traditional Chapter 13 Plan: This is the most common type, where the debtor proposes a plan based on their disposable income and the value of their assets. 2. Zero Percent Plan: In some cases, debtors may propose a plan where unsecured creditors receive no repayment. This could be applicable when the debtor's income does not allow for any additional payments over essential living expenses. 3. Cram down Plan: This plan allows debtors to reduce the principal balance on certain secured debts, such as car loans or mortgages, to match the fair market value of the collateral rather than the amount owed. 4. Partial Payment Plan: Debtors who cannot afford to repay all of their debts may propose a plan where creditors receive only a percentage of what they are owed. This is often a feasible option when the debtor's income is limited. It is essential for individuals considering the Chapter 13 Plan in Wilmington, North Carolina, to consult with a qualified bankruptcy attorney who can guide them through the intricacies of the process and help determine the best plan for their specific financial situation.