In some cases, your Braceville bankruptcy lawyer is going to advise you to do a Chapter 13 bankruptcy and repay the remainder of your debt over the next 36 to 60 months. As long as you’re paying back through a Chapter 13 trustee at least what creditors would have gotten if you did a Chapter 7 liquidation case then you have satisfied the bankruptcy code and your case can be recommended for confirmation.
If the Chapter 13 trustee recommends your case for confirmation then your case is solid. You simply continue to make your monthly payment over the next three to five years until your case completes and until you receive a discharge. As long as you continue to make your payment without issue then the trustee will not come into your life in the form of a Trustee’s Motion to Dismiss.
If, however, you fail to make a payment then the trustee can come in on a trustee’s motion to dismiss asking that your case be dismissed. That court date must be set out on notice by the Chapter 13 trustee and it must go to you, the debtor, and to your Chapter 13 bankruptcy lawyer and it must be set before a bankruptcy judge at a specific date, time and location.
If you’re able to cure the default on that first hearing date then the Chapter 13 trustee will likely dismiss the motion to dismiss. If, on the other hand, you have nothing to provide to the trustee then the trustee’s motion is likely going to be granted. In the event the trustee’s motion is going to be granted you will have an opportunity in most cases to re-file another bankruptcy Chapter 13.
By filing another Chapter 13 bankruptcy you get another bite at the apple to repay your debt. You will have to pay another filing fee, which at the time of this writing is $281.00 for Chapter 13 bankruptcy cases filed anywhere in the country, you will also have to submit to another credit counseling session within 180 days of the filing and you will have to submit paycheck stubs and four years of tax return information.
Additionally, the automatic stay in a re-filed Chapter 13 bankruptcy case is only 30 days if you are filing after a case was dismissed within the last year. In the event that that’s the case you or your attorney has to bring a motion to extend the automatic stay. A motion to extend the automatic stay must be brought within 30 days of re-filing the second case. Most of the motions to extend the automatic stay are going unopposed. What I mean by unopposed is that most creditors are not going to bother to try and prevent the automatic stay from extending. You may not know how to bring this motion if you file bankruptcy yourself.