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

A repayment plan in a Chapter 11 bankruptcy is designed to repay all or a portion of your debt. The repayment plan is developed by the debtor (you) in collaboration with the creditors, and must be approved by the court. The first step in coming up with a repayment plan is to estimate your disposable income. Your disposable income is the money you have left over after paying for necessary expenses such as debt payments, monthly rent or mortgage payments, utilities, and other regular expenses. After you have determined your disposable income, you can begin creating the repayment plan. Next, you must prioritize your creditors and determine how each will be paid. Generally, secured creditors usually are paid first, followed by priority debts such as taxes and child support, and then unsecured debts like medical bills and credit cards. It is important to note that you must have a plan to pay back at least a portion of the debt owed to all of your creditors. Once you have determined your repayment plan, you must submit it to the court for approval. The court will review the plan and make sure that it is feasible. The court will also review the plan to ensure that creditors are being treated fairly and that the plan is in compliance with North Carolina Chapter 11 bankruptcy laws. Once the court has approved the plan, you must make regular payments as outlined in the repayment plan. If you miss payments or fail to make the payments as agreed, the court may dismiss the case and the creditors will likely have the right to pursue collection activities against you. Therefore, it is important to make sure that you are able to stick to the repayment plan before filing for bankruptcy.

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

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