If you are struggling with your debts, consider bankruptcy as a solution to your financial problems. While many people fear the consequences of bankruptcy, if you are proactive and responsible, Chapter 13 bankruptcy can fix your financial situation without harming your long-term prospects. Chapter 13 bankruptcy allows you to discharge the majority of your debts by diligently making payments on a structured payment plan. My law firm can help you navigate the process and avoid the most common reasons for Chapter 13 bankruptcy dismissal.
Common Reasons for Chapter 13 Bankruptcy Dismissal
Filing for Chapter 13 bankruptcy protection comes with several benefits. The process protects you from creditor harassment and guarantees that many of your debts will be discharged if you adhere to the requirements. However, these protections disappear if your bankruptcy case is dismissed by the court. Thus, it is important to avoid the mistakes discussed below.
If your Chapter 13 bankruptcy is dismissed, you will lose all the benefits that come with it.
Failure to Make Timely Plan Payments
When you get a Chapter 13 bankruptcy plan approved, the courts trust you to make timely payments for the next three to five years. If you fail to make any payments, you are unlikely to receive another chance. Bankruptcy is considered your final chance. I will help you carefully plan your budget and set up automatic payment systems when possible.
Failure to File Required Documents
When you file for Chapter 13 bankruptcy, you are required to file documents. These documents must include:
- A complete list of all creditors and how much they are owed
- A record of all sources of income and how much money you are making annually
- A detailed list of all property you own
- A complete accounting of all your monthly living expenses.
If your petition to the court is missing any of this information, your case will probably be dismissed without your having the opportunity to correct the record.
Changes in Financial Circumstances
When the court approves your bankruptcy plan, it assumes that your financial situation will stay stable for the duration of the plan. Unfortunately, life doesn’t always cooperate. If your situation significantly improves or declines at any point in the process, you need to advise the court and your assigned trustee immediately. Failure to do so can result in your case being dismissed or your losing out on the opportunity to have your debt discharged due to financial hardship. The best way to inform the court is to contact me as soon as possible after any changes in your financial situation.
Failure to Attend 341 Meeting or Other Court Hearings
Meetings and hearings are not optional when filing for Chapter 13 bankruptcy. The court is allowing you to recover financially, but only if you follow every step of the process. The 341 meeting is when lawyers for both sides meet and discuss exactly how much is owed and the financial situation of the debtor. It may seem like a formality, but your case will be dismissed if you miss it or any other court hearing.
Are you considering Chapter 13 bankruptcy to avoid financial ruin? My law firm represents clients in Florida seeking to recover from financial difficulties through bankruptcy. Contact me at (407) 749-0080 to schedule a consultation.
Key Tips to Avoid Dismissal
When I work with a new client seeking Chapter 13 bankruptcy, I emphasize the following tips to avoid having the courts dismiss their case.
Budget Carefully
Unfortunately, for the next three to five years, you will be on a strict budget. If you are to maintain that budget, it needs to be realistic and accurate. The best method is to carefully track all income and expenses and determine what expenses can be reduced during the next few years. It is often painful, but it is necessary. My law office will help you create as detailed a budget as possible.
Communicate With Your Attorney
Every lawyer in any field of practice will tell you the same thing: If you aren’t honest and open with your attorney, they can’t help you to the best of their ability. Even worse, if you lie or withhold critical information, they may not be able to help you at all. I will advise you on every potential pitfall or challenge that you may face, but I can only advise you accurately if you are honest with me. There is no harm in being truthful with me. Take advantage of that and my years of experience.
Stay Organized
Document everything. It may seem ridiculous to keep a 75-cent receipt for a parking meter, but that is money you spent, and it needs to be accounted for. I will help you take advantage of digital and physical methods of documentation and tell you exactly what needs to be documented. You just need to follow up on preserving that information. The easiest way is to pay for everything through your bank account.
Be Proactive
When problems arise, you want to deal with them as soon as possible. The best way to do this is to look ahead and identify problems before they happen. For example, if rumors are swirling in your workplace that layoffs are coming, advise me immediately. The rumors might not turn out to be true. But if I am aware of a potential issue with your being able to fulfill your payment plan, I can get ahead of it.
Contact Lewis Roberts, PA for Bankruptcy Representation in Florida
Chapter 13 bankruptcy can protect you from financial distress if you put in the effort. It is a complicated process with a lot of potential pitfalls for anyone who isn’t prepared. With careful planning and the support of my law firm, you can benefit from this legal process.
Don’t wait to call my law firm. I have decades of experience and can help you avoid making mistakes that result in your case being dismissed. Call me today at (407) 749-0080 to learn more.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]
