In a Chapter 13 bankruptcy, the debtor must partially repay certain unsecured debts over time according to a detailed court-approved plan. Although most debtors successfully fulfill their plan payments and receive a discharge of remaining debt, there are things that can cause a Chapter 13 to go askew.
Creating a plan requires making projections of income and expenses over the three to five years that the plan will be in place. However, it is difficult to forecast everything that might befall an individual debtor. Here are some of the events that can cause difficulty in adhering to a Chapter 13 plan:
Another potential cause of derailment of a Chapter 13 is failure to keep the lines of communication with the court trustee open throughout the plan period. Some debtors move or change phone numbers without informing the trustee or the court, which can cause important notices and communications to be missed. a Chapter 13 attorney can ensure that all relevant changes in the debtor’s situation are brought to the trustee’s attention.
Jeff Field & Associates concentrates its practice on bankruptcy and debt relief in and around Atlanta, Marietta and Athens, Georgia. If you have a personal debt problem, feel free to contact us online or call 404-381-1278 for an initial consultation.
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