Missouri and Illinois Chapter 13 Rules: Your Plan Payment

In a Chapter 13 case in Missouri and Illinois, your St.plan lasts longer, your payment can be lower.
Louis bankruptcy attorney makes a plan for you toThe likelihood is that it took you some time to get into
repay any debts that must be repaid to your creditors.enough debt to file a Missouri or Illinois Chapter 13.
The first payment is due 30 days from the date yourNaturally, it may take you a bit of time to get back out
case was filed, even if that date occurs before yourof debt. Three to five years doesn't seem that long
plan has been confirmed.when you realize that you'll be able to protect yourself
Often, people who are filing Missouri or Illinois Chapterand your family from the consequences of debt for
13 think that their payment plan is just based on theirthe rest of your lives.
available income. The amount of your payment isSo, what happens if you don't make your plan
actually determined by several different factors in yourpayments? Your case will be dismissed. Your plan
case. What are those factors?can't be confirmed in the first place if you haven't
1. The amount of disposable income in a realisticmade the required payments and, if you are into the
budget. 2. The amount that would typically be repaid inlife of your plan, not making a payment will put you and
a Chapter 7 case if the Trustee was able to sell someyour family on the dismissal docket. That means that
of your assets. 3. The amount of debt that would fairlyall the work and energy that you put in to making a
be repaid to your creditors, determined by the Meansbetter life for you and your family will have been for
Test created by the 2005 Bankruptcy Amendments 4.naught.
The amount of debt you must repay in order to beThere is no tool like a Chapter 13 bankruptcy. What
eligible for a discharge at the end of your case.other tool can get you protection from foreclosure,
The plan can last anywhere from 36 to 60 months.credit card debt help, and relief from your creditors and
This amount of time allows you to develop moremore? To be eligible for those benefits, though, you
responsible spending habits and practice makingmust not break the rules. Making your plan payments is
decisions that keep you out of debt. Additionally, if yournot a rule you want to break.