When a debtor files for debt reorganization under Chapter 13, he or she hopes to create a repayment plan that a court approves in order to pay off debt and get back on track financially.
Once the court approves the plan, however, it is absolutely essential for the debtor to follow the plan if at all possible. If the debtor sets up the repayment plan and then fails to follow it, he or she may face even greater difficulties than those that motivated the bankruptcy in the first place.
To avoid seeing a court dismiss a repayment plan, a debtor must live within fairly strict financial boundaries. If a debtor has child support obligations, the bankruptcy does not undo those obligations. In addition to abiding by the repayment plan, the debtor must also maintain his or her child support obligations. Similarly, the debtor is generally not allowed to accrue any new debts without first consulting with the bankruptcy trustee.
In some cases, a debtor may find that the plan is still not possible to meet, once he or she lives with it for some time. In these instances, a debtor may petition the court to modify the repayment plan to something more achievable. However, for a court to consider a modification, the debtor must demonstrate that he or she is willing to work within the plan and follow it carefully, even in the face of financial difficulty.
If you are considering a Chapter 13 bankruptcy, or if you feel as though you are currently in over your head with Chapter 13, you can consult with an experienced bankruptcy attorney who can guide you through the process carefully. with professional counsel, you can make sure you fully understand the issues at hand while keeping your rights protected during this difficult season.