Why Some Chapter 13 Cases End Before They Ever Get Started
Filing a Chapter 13 case is easy. Keeping it going is the tricky part. A Chapter 13 case can provide immediate relief and peace of mind. There is a certain element of “instant gratification” that gives it appeal on day one of the case. In many jurisdictions a case can be filed for “no money down.” Spending a few hours at an attorney’s office and signing some paperwork will make the foreclosure, repossession, garnishment or other collection efforts stop, as if by magic. Appearances can be deceiving. A successful Chapter 13 case usually requires a three- to five-year commitment involving monthly payments. The jumble of rules, requirements, meetings and hearings can seem like a bad set of instructions for building a complicated piece of furniture. Miss something important and the case will be dismissed, leaving you right back where you started, or maybe in even worse shape. Let’s look at the common reasons why Chapter 13 cases fail, and how to avoid