Chapter 13 Bankruptcy Plan Drafting Question
I am an attorney, and I recently decided to start accepting personal
bankruptcy cases. I would like to draft plans "correctly", rather than
simply following blindly what someone else may have done previously.
Anyone willing to share how they calculate plan payments, and how they
approach plan drafting??
First, many districts used mandatory plans, that is all of the terms of
the plan are already made out. You simply have to fill in the blanks.
I suggest you check out of your local bankruptcy court has such a form.
If so, use it.
Second, there are computer programs that will help you calculate the
budgets and plan payments. Check out some legal software companies or
call some other BK attorneys in your area to see they use
If you have one of the newer bankruptcy software packages, the computer
generally drafts plans which may or may not be acceptable to your local
trustee. See if you can find out from the other practitioners what percent
of unsecured creditors obligations is the lowest acceptable amount.
Usually, if the secureds are taken care of, and you do whatever the
trustee calls reasonable with the unsecureds, you should be okay. eg in
East Tennessee, its dangerous to go below 30%, but in Birmingham, I'm told
you can go lower than 9%.