When you have a mountain of debt that you can’t seem to pull yourself out of, declaring bankruptcy can give you a clean slate. If you are interested in retaining possession of your belongings and are declaring Chapter 11 or Chapter 13 bankruptcy, you will need to structure a reorganization plan that describes how you are going to repay your creditors.
Typically, a reorganization plan spans three to five years, so you should keep that in mind when dividing up your debts. Read on to learn more about what information you should include when writing your bankruptcy reorganization plan.
What to Include in Your Plan
Before your bankruptcy petition can be approved, your creditors will need to approve your reorganization plan so all of your debts are accounted for and accurate. Some of the most important information you’ll want to include in your repayment plan is as follows:
- A complete list of your debts and creditors
- How you’ll be able to repay your debts (monthly, weekly, through wages or business earnings, etc.)
- How your business will be able to stay open while you repay your debts (if applicable)
- Which debts are going to be paid in full
- Which debts are going to need to be renegotiated
Once your plan has been written, you will have a meeting with your creditors, where any discrepancies will be addressed, renegotiations will take place, and creditors will have the opportunity to make suggestions of their own to ensure your reorganization plan is workable for all sides.
What if You Can’t Stick to Your Plan?
If your reorganization plan has been approved, it will be obligatory and binding. You’ll be expected to stick with the terms described in your plan. If you become unable to make your payments, you will need to either renegotiate the terms of your reorganization plan or request a hardship discharge.
Hardship discharges are rarely granted, as the court will need to see that circumstances beyond your control caused you to be unable to meet your obligations. Your creditors will need to have been repaid as much as they would have if you had filed for Chapter 7 before your petition for a hardship discharge will even be considered.
If your request is approved, however, you can expect your debts to be discharged immediately, and your creditors will no longer be able to seek repayment from you or your co-signers.
Get in Touch with a Terre Haute Bankruptcy Lawyer
To discuss the details of your case with an experienced Terre Haute bankruptcy lawyer, reach out to Rowdy G. Williams Law Firm as soon as possible. You can set up an initial consultation by giving our office a call at 1-812-232-7400 or completing the contact form at the bottom of this page.