What Can Go Wrong In My Chapter 13 Case?
As you have read elsewhere on this web site, Chapter 13 serves as bankruptcy court administered payment plan. Unlike informal payment plans, or even payment plans set up by Consumer Credit Counseling or other credit management companies, Chapter 13 brings with it the power of federal law. Your Chapter 13 repayment plan can be imposed upon creditors, and, in some cases, your creditors will be forced to accept less than a 100% payment.
In order to benefit from the power of Chapter 13, you must follow the rules. At Clark & Washington, we have successfully represented over 2,000 clients since the October, 2005 changes in the Bankruptcy laws and we can help you avoid many of the problems that plague other Chapter 13 debtors.
There are two possible problem areas in your Chapter 13 about which you need to know - the first is funding and the second is objections to your case.
Problem One: Funding Problems in Chapter 13 Cases
Often the problem we face in our Chapter 13 cases relates to funding. Since Chapter 13 is a payment plan, you - the debtor - must fund (pay into) your plan. As long as you fund your Chapter 13 case, there is a very good chance that we will be successful in saving your home, preserving ownership of your vehicle and furniture, and keeping creditors off your back.
If you have a regular job, funding should not be a problem as your Atlanta Chapter 13 trustee will require that you fund your case through a payroll deduction. Payroll deduction of your Chapter 13 payment benefits you because it usually eliminates funding problems in your case. All we need from you is the name and address of your payroll office and we will do the rest.
It has been our experience, by the way, that you will not have problems with your employer because of the payroll deduction order in your case. Most mid-size to larger companies in the Atlanta area have a lot of experience with bankruptcy “employer deduction orders” (also called an EDO) and Clark & Washington has legal assistants on staff to assist any payroll office with questions about your Chapter 13 trustee payroll deduction.
If you are self employed, then your case will be a “pay direct” case. If you are paying your trustee directly, you will need to make sure that your Chapter 13 payment is a priority as pay direct cases receive special scrutiny from the Chapter 13 trustee.
Problem Two: Written Objections Filed in Chapter 13 Cases
The other possible problem we face in your Chapter 13 case has to do with objections from either the Chapter 13 trustee or creditors in your case.
Do not be alarmed if your Chapter 13 trustee files one or more objections in your case. Almost every Chapter 13 filed in the Northern District of Georgia ends up with one or more trustee objections. Creditor objections are a little less common than trustee objections, but they happen too. Click here to read about some of the more common trustee and creditor objections in Atlanta Chapter 13 cases and our strategy for solving these problems.