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Reasons that Chapter 13 Cases Need Attention to Avoid Dismissal
When facing financial hardship, individuals often turn to Chapter 13 bankruptcy to manage their debt. However, not all Chapter 13 cases are successful. In Sacramento, CA, several factors contribute to the failure of these cases. Understanding these reasons and learning how to improve your odds of successful completion is vital. In this article, we at Liviakis Law Firm will guide you through this process.
One of the primary reasons Chapter 13 cases fail is due to the debtor’s inability to maintain their payment plan. Chapter 13 requires a 3 to 5-year commitment to a payment plan that may prove difficult for some debtors. If a debtor fails to make the required payments, their case may be dismissed.
A second reason is a change in financial circumstances. If a debtor experiences a job loss or unexpected large expense during their payment plan, they may not be able to continue payments. This could lead to case dismissal as well.
Lastly, lack of legal guidance can lead to failure. The bankruptcy process is complex and having knowledgeable legal representation can make a significant difference. At Liviakis Law Firm, we are committed to providing comprehensive legal support throughout the bankruptcy process.
So, how can you improve your odds of successful completion? First and foremost, develop a realistic and manageable payment plan. This requires a thorough understanding of your income, expenses, and debt. It’s also important to maintain open communication with your attorney, especially if your financial situation changes.
Secondly, ensure you have competent legal representation. A seasoned bankruptcy attorney can guide you through the complexities of the process, provide advice tailored to your situation, and help you navigate any hurdles that may arise.
Lastly, stay committed to your plan. Bankruptcy is a significant commitment, but with dedication and the right support, it is possible to successfully complete your Chapter 13 case.
At Liviakis Law Firm, we are dedicated to helping our clients succeed. If you’re considering Chapter 13 bankruptcy or already in the process, don’t hesitate to contact us at 916 459 2364. We’re here to help you navigate your financial future.