Filing for Chapter 13 Bankruptcy is a very tricky choice. Due to so many restrictions, proceeding with Chapter 13 Bankruptcy can certainly be problematic. You are given a Chapter 13 Bankruptcy Plan which requires you to make monthly payments to a trustee for three to five years. This may sound like a an agreeable arrangement since you are making payments for a maximum of only 5 years, similar to financing a car, but of course there are some complications.

A Chapter 13 Bankruptcy Plan is determined by your household size, income and debts. Unless you repay 100% of your debt, your payments must equal the entire amount of your disposable income. After paying the total sum of your monthly expenses, established by an average household-size rating for your location, the remainder of your income must be paid to a trustee every month.

The anxiety of unexpected expenses becomes evident. When every bit of disposable income is taken away how are unpredicted emergencies managed? However, unforeseen expenses don�t mean the end or catastrophe of a Chapter 13 Bankruptcy. Typically, you can bring your plan back to a current status.

Your trustee may file a Motion to Dismiss Chapter 13 for insufficient payment. A judge my deny the motion and grant you an extension to catch up with your payments. If you are not able to bring your payments current within the indicated time the judge appoints, then the judge can dismiss the Chapter 13 Bankruptcy. In this situation, you then have fourteen days to file a Motion to Vacate, which is then set for a hearing. In some cases you will be allowed another sixty days to repay the amount you could not pay initially.

Even though there are frightening restrictions on your monthly income, it is still possible to have a positive outcome with a debt-free ending. To learn more facts about filing a Chapter 13 Bankruptcy, contact Affordable Legal Services in Madison, Wisconsin at 608-255-9491 or Sun Prairie, Wisconsin at 608-834-1355.

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