Your Fairview Heights Bankruptcy Lawyer Explains What it Means if Your Chapter 13 Plan Isn't Feasible

by James R. Brown questions@castlelaw.net

President and Principal Attorney at Castle Law Office

As a Fairview Heights bankruptcy lawyer, I've had clients come to me confused because their Chapter 13 payment plan isn't feasible. If the court finds your plan not feasible after the deadline for filing claims has passed , this means that the total of all plan payments scheduled to be paid under your plan is not enough to pay all the creditors that are required to be paid to get your discharge.

You may be wondering, what causes the plan to not be feasible? The deadline for filing proofs of claim is normally 90 days after the case is filed and up 6 months for governmental units like the IRS. So within this time frame, one or more of your creditors may file a proof of claim in an amount that is more than the amount you informed us is owed on the account. Since your plan payment is based on paying back the amounts you provided, this can cause the case to take more than the 5 year maximum allowed for a Chapter 13 if the payments were not adjusted. Simply put, a Judge will not allow a case to go more than the allowed 5 years. A creditor may overstate what is due, include improper items, or it may even be accurate, but the amount you gave your Fairview Heights bankruptcy lawyer was severely understated. Basically, your plan will not work, and it is not feasible.

So, if you're wondering what you're supposed to do next, that's where I come in as a Fairview Heights bankruptcy lawyer. By clicking on this link you will receive some information from my blog on what to do if a feasibility problem arises. Because every case is different, it is best to seek help in person, so all the details of your case can be reviewed, and corrected properly.

If you choose to do nothing to correct your case's feasibility problem, you are letting your case be dismissed. It may not be right away, but it will get dismissed and that puts you back to where you started. This will start debt collector calls and wage garnishment right back up, and you will no longer receive the protection you deserve. In addition, you will have a bankruptcy on your credit report that did you no good. If a case is dismissed for lack of feasibility it shouldn't have been, because it is an issue that can be easily fixed.

If you are considering Chapter 13 bankruptcy to regain control of your debt, as a Fairview Heights bankruptcy lawyer, I hope you will do your research to gain the knowledge you need to keep from making mistakes you'll regret. This is why, before you speak to an attorney, debt collectors, or sign any forms, you need to read my FREE book, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know."

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