While every Chapter 13 case filed by Clark & Washington has the potential to work, not every case will be confirmed.  By far the biggest problem that we see in Chapter 13 has to do with funding – if a debtor does not make his payments to the trustee, his case will not be approved.

In the Northern District of Georgia (which includes Atlanta, Rome, Gainesville and Newnan), all Chapter 13 cases must be funded by payroll deduction.  This means that the Clerk of Bankruptcy Court will send your employer a Court Order requiring your payroll office to deduct funds from every paycheck and send this money to the trustee.

If you are paid every two weeks, a deduction will be taken from every check.  If you are paid weekly, the you will see the deduction every week.

If you are self employed, then you will have the responsibility to send in a payment at least once a month.

Often, it can take 1 to 3 pay cycles before a payroll deduction “kicks in.”  During that time you must send in the trustee payment yourself.  A problem that often arises – an employer does not start the payroll deduction until 30 to 40 days into the case, leaving the debtor a month or more behind.   If you can eliminate funding problems from your case, your chances of success go way up.

What if I Lose my Job During my Case

An unexpected job loss can also result in the failure of a Chapter 13 case.  Generally, an interruption in plan payments is  a bigger problem the earlier in the process it happens.  For example, if you filed your Chapter 13 case three weeks ago, and your case has not yet been confirmed (formally approved) then a loss of income and plan funding source will likely result in a dismissal or a conversion to Chapter 7.

By contrast, if your case was confirmed two years ago and you lose your job unexpectedly, we can usually work out a deal with the trustee to give you a two to three month suspension in play payment obligation so that you will have the time to keep your case active while you search for a new job.

Because Clark & Washington has represented literally thousands of debtors over the past 20+ years, our attorneys have seen just about every possible problem that could arise in a Chapter 13 case.   Just about every Chapter 13 problem has a solution and we pledge to offer you the benefit of our experience and expertise to make your case succeed.