QUESTION:
I've
been making payments on a Chapter 13 repayment plan
for more than two years. I recently fell behind on
my payments and my trustee has petitioned for a dismissal.
What can I expect if I go to court?
ANSWER:
Once
you get through the courthouse doors, the trustee
will likely argue that your plan is no longer feasible
-- that you cannot make the payments and therefore
your creditors aren't getting paid and protected
through bankruptcy.
Your
best shot is to remember that old scout creed about
being prepared. You'll have to show the court that
you can get back on track with your plan, or propose
an amended plan with payments that are feasible for
you and provide a sufficient amount to your creditors.
If
the court agrees with the trustee and dismisses your
case, you'll owe your creditors the current balance
on your debts -- that is, what you owed at the start
of your bankruptcy case, less the amounts you paid
through your repayment plan -- plus the interest
that stopped accruing while you were in bankruptcy.
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