How do I come up with a repayment plan in a Chapter 11 bankruptcy?

In Utah, the rules of Chapter 11 Bankruptcy Law state that the debtor, or person filing for bankruptcy, must devise a repayment plan in order to be eligible for this type of bankruptcy protection. Through this repayment plan, the debtor must repay certain creditors over a period of 3-5 years. To come up with a repayment plan, the debtor must first assess their income and expenses. This will help them understand what their average surplus and deficiency after expenses may be. The debtor will then review all of the debts owed and assigned priority levels to them. Debts with high priority, such as certain taxes, should be re-paid first. After that, the debtor will come up with a repayment schedule for the other debts. This repayment schedule should be realistic and feasible for the debtor to be able to meet. The debtor must also provide any necessary documents required by the court, such as financial records and a list of all creditors. The court will then review the repayment plan and decide if it is a fair and reasonable amount for the debtor to pay back. If approved, the court will order the debtor to pay their creditors according to the repayment schedule in the plan. This repayment plan must be closely adhered to by the debtor in order for them to be allowed to remain in Chapter 11 Bankruptcy and receive protection from creditors. It is important to remember that Chapter 11 Bankruptcy Law in Utah is complex and it is wise to seek advice from an experienced bankruptcy lawyer if you are considering filing for a Chapter 11 Bankruptcy.

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