Chapter 13 Payment Plan Dismissal
Aurora Illinois Bankruptcy Lawyers & Attorneys
David Siegel: Well, several things happen. A case will either be dismissed when an individual doesn't make the planned payments on time over a course of months.
Jesse Barrientes: Dismissed by?
David Siegel: The trustee or by a creditor.
Jesse Barrientes: They'll come in on a motion.
David Siegel: They'll come in on a motion to dismiss and from that point on the creditors can pursue the debtor again. The other option is –
Jesse Barrientes: So they don't have the protection of the state keeping them away.
David Siegel: That's right. And here's why, Jesse. You're talking about a three- to five-year payment plan for exactly what you have available per month. That is a tough row to hoe and for a lot of people Chapter 13 just wasn't a good option. They really didn't have the ability to budget and pay it back. And for those people it was just a good college try that failed.
But for others, for the 15 to 25 percent that succeed, those are people that typically lost their job and became employed again. Were sick and now they're back healthy or some other reason why they couldn't make their payment and that's been cured. Those people can succeed with a Chapter 13 Aurora bankruptcy case, where other people who try a Chapter 13 just to save a ship that’s sinking when really the ship is already sunk.
Jesse Barrientes: They should – right. Yeah.
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See Also:
Chapter 7
Misconceptions about Chapter 7
Life after Chapter 7 bankruptcy
Privacy is protected in bankruptcy
Household income qualifications
Converting Chapter 13 to Chapter 7
Converting Chapter 7 to Chapter 13
Chapter 13
Using Chapter 13 to save a home
Choosing Chapter 13 versus Chapter 7
Debt consolidation & late fees
Administrative fees & the bankruptcy trustee
Chapter 13 payment plan dismissal
