Tuesday, February 11, 2014

The Confirmed Chapter 13 Plan

The provisions of a confirmed plan bind the debtor and each creditor.  Once the court confirms the plan, the debtor must make the chapter 13 plan succeed. The debtor must make regular payments to the trustee either directly or through payroll deduction.

A debtor may make plan payments through payroll deductions. This practice increases the likelihood that payments will be made on time and that the debtor will complete the plan. In any event, if the debtor fails to make the payments due under the confirmed plan, the court may dismiss the case or convert it to a liquidation case under chapter 7 of the Bankruptcy Code.  The court may also dismiss or convert the debtor's case if the debtor fails to pay any post-filing domestic support obligations (i.e., child support, alimony), or fails to make required tax filings during the case.