Living beyond limits, using credit cards frequently can land you in huge debt. In such a case, people often find bankruptcy to be a great way out of debts. Chapter 13 bankruptcy offers debtors a chance to stop collection action while repaying some portion of their debt through a court mediated repayment plan. This plan is developed based on the disposable income of the bankruptcy filer. Disposable income puts certain financial restrictions on the debtor, eliminating all unnecessary expenses to accommodate the repayment plan. However, inform Dallas based bankruptcy law firm Recovery Law Group, people sometimes end up missing the payments. The consequences of this can be quite hard.
If an individual debtor misses’ making the payments as per the repayment plan, the bankruptcy trustee should examine why the lapse occurred. In case, they find no justifiable reason, they can recommend the dismissal of the bankruptcy case to the court. Dismissal of the case by the court will land you in a soup as the creditors whom you owe debts can resume collection actions to get their money back.
If the bankruptcy trustee recommends dismissal of the case, the bankruptcy filer has legal rights to file a petition in order to reinstate the plan. This can be approved if there is evidence convincing enough to prove that they can continue with the payment plan. Another option available is to file a petition to the court for a more reasonable repayment plan which can be easily managed by the debtor. Remaining engaged in the process by the bankruptcy filer shows their intent to pursue the repayment plan in order to get rid of their debt. This can work in their favor; else the court might end up dismissing the case leaving the debtor in a lurch.
It is important that while working out a repayment plan in Chapter 13, you wisely inspect your circumstance before agreeing to the repayment plan. Bankruptcy can be quite confusing and should best be handled by experienced bankruptcy lawyers. If you wish to get rid of your debts through Chapter 13 bankruptcy, it is important that you call 888-297-6023 and consult with the best attorneys of the field.