Ballwin, Missouri Chapter 13 Bankruptcy Law Firm Helps Debtors Get Back on Track

Missouri Chapter 13 Bankruptcy Attorney Assists Clients in Managing Their Debt

Once an individual has filed a petition for chapter 13 bankruptcy and the court has approved his repayment plan, it is up to the debtor to make the plan succeed.

To do so, the debtor must make regular payments to the chapter 13 bankruptcy trustee, either directly or through payroll deduction. He must also agree to live on a fixed budget for a prolonged period of time, usually three to five years.

The Chapter 13 Repayment Plan

While confirmation of the repayment plan entitles the debtor to keep his property as long as the payments are made, he is not permitted to incur new debt without first consulting with the bankruptcy trustee, since additional debt might compromise the debtor's ability to complete the repayment plan.

If the debtor fails to make the payments due under the confirmed repayment plan, the court may dismiss the case or convert it to a liquidation case under chapter 7 of the federal Bankruptcy Code, which might result in the property being sold to pay the debt owed. The court might also dismiss the case if the debtor fails to make required tax filings during the case.

If the debtor makes all the payments under his chapter 13 plan, he is entitled to a discharge and is release from all debts under the plan as long as he certifies that:

• He has made all his domestic support obligations during the life of the plan
• He has not received a discharge in a prior case within two years
• He has completed a Missouri-approved course in financial management

With the help of an experienced attorney like James B. Day, Chapter 13 bankruptcy can allow you to get your finances back on track. Contact The Law Office of James B. Day, LLC online or call 314-786-1218 to schedule your free, no-risk initial consultation today.