How St. Louis Chapter 13 Payment Plans Are Calculated
When you file a St. Louis Chapter 13 bankruptcy, a repayment plan is constructed. This plan is used by the Chapter 13 Trustee as a roadmap to make monthly payments to the various creditors listed therein. So long as the correct creditor is listed, the proper amount owed, and the appropriate interest rate is used, then the Trustee can disperse the monthly payments.
The specific manner in which the monthly payment is calculated is fairly straightforward by a St. Louis bankruptcy lawyer. For example, if you owe the federal government taxes in the amount of $3,000 (which is a debt that would be paid back inside the Missouri Chapter 13) and you are put into a three year payment plan (a Chapter 13 runs from three to five years in length, depending on the situation) , then the portion of your monthly payment that would go towards that debt would be $83.33 (3,000 divided by 36 months). After making similar calculations for the rest of your debts to be paid back (including appropriate interest rates when applicable), the monthly payment can be figured out.
Of course, problems can arise when trying to determine which debts are to be paid, at what rate, and whether the full amount should be paid on. This is why it is terribly important to engage an attorney with a great deal of knowledge and expertise in the specialized area of bankruptcy law. The St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have the legal experience necessary to help guide you through the bankruptcy process, and make sure you get the fresh start / clean slate you deserve.