What are some ways to protect a Chapter 13 from being dismissed?

The number 1 reason why a Chapter 13 case might be petitioned for dismissal is for non-payment. In our District, we can file Moratorium motions that will allow the Debtor to go 1-3 months without making a trustee payment. These months are put to the back of the Debtor’s plan payments. Generally, for a Trustee to approve a moratorium motion, the Debtor usually needs to have shown a history of payments (at the very least 6-9 months) and provide a reason why the Debtor needs a short 1-3 month period of not having to make the Truste payment.

In addition, make sure you always reply to the Trustee letters. If the Chapter 13 Trustee send a letter stating you are behind, call them asap or call me!

Finally, somtimes we can amend your plan to make a lower payment. In most instances you are making the lowst possible payment. However, call me first to see if their is a way w can file an amended plan for lower payments.

- Stone Law Firm

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