When you file for Chapter 13 bankruptcy, you’ll be required to meet a varying roster of requirements throughout the process for your case and repayment plan to continue from stage to stage. If you met the stipulations set by the U.S. Bankruptcy Code necessary to move your petition into the next stage, you’ll begin the restructuring of your debts into a suitable repayment plan. Because building a proposal for a repayment plan that your trustee will accept is the most difficult stage of filing for Chapter 13 bankruptcy, the help of a bankruptcy attorney is critical at this point. Behm Law Group, Ltd. offers the legal advice and assistance you need for a successful petition for Chapter 13 bankruptcy in Redwood Falls, MN.
One of the many requirements that your repayment plan proposal must meet for approval is the passing of the Feasibility Requirement. Your trustee will examine your plan proposal to ensure you can meet your outlined payments month to month. While it is essentially a way of determining if your plan is viable given your current and projected future financial situation, the term “feasibility” holds two meanings in a Chapter 13 bankruptcy case.
Feasibility for You
Whether or not your plan is feasible is determined in part by your own financial situation. If you can meet payments, your plan is feasible. If your income changes and you can no longer meet payments, your plan becomes infeasible. The Feasibility Requirement may be tested against your situation several times throughout your 3-5 year repayment plan. What the filer understands as the “Feasibility Requirement” most often depends entirely on one’s financial abilities, but in some cases, it can refer to another type of feasibility.
Feasibility for Your Trustee
The Feasibility Requirement in a Chapter 13 case can also depend on Mathematical Feasibility. Mathematical Feasibility (or Disbursement Feasibility) comes into consideration after the filer passes their own requirements for the Feasibility Requirement. If you can feasibly complete your repayment plan, your trustee must also consider the disbursing of payments to creditors. Because some plans are proposed based on inaccurate information, trustees must calculate the sum transactions. The necessary output to the creditors might not always be equal to the input in the filer’s proposed plan. If this is the case there’s a mathematical infeasibility, and the plan cannot be confirmed until the inaccuracies are rectified.
The process of proposing a repayment plan when filing for Chapter 13 bankruptcy in Redwood Falls, MN, can be somewhat complicated and difficult. Don’t hesitate to contact Behm Law Group, Ltd. at (507) 387-7200 for more information about the counsel and support our experienced attorneys can provide.