No, not necessarily. Although sometimes it can get held up because of a disagreement between you and the Trustee.
When you file a St. Louis Chapter 13 bankruptcy, one of the key forms that need to be submitted to the court is a Chapter 13 plan. This plan describes in detail which creditors are to be paid, over what period of time, using which particular interest rate, and whether or not such payments will be made by the Trustee or the Debtor (i.e. the person who files for a St. Louis bankruptcy). Once all of this data is compiled, and the necessary calculations are made, you are your attorney will be in a good position to determine how much your monthly payment should be.
So let’s look at a particular example: let us assume that you have a mortgage on your house, but you have fallen behind on payments by four months. This arrearage equals $4,500, and will be paid back over the course of several years. In addition, let us further assume that you have a car loan with a balance of $17,000. This debt will also be paid back during the life of your Missouri Chapter 13 plan. And if you owe any tax debt, back child support, or overdue spousal support (i.e. alimony), these things will be paid back as well. In addition, it is possible that you will have to pay back a certain portion of your unsecured debt as well (things like credit cards, medical bills, payday loans, etc). But there are specific calculations that are used to determine how much of this debt is paid back.
All of these debts are then reduced to one single payment to made monthly to the Trustee (who upon receipt of the funds, makes dispersements to the creditors listed in your plan). So long as the monthly amount you are to pay satisfies all of the required debts, then the likelihood of your plan getting confirmed by the judge is excellent. But if there are major discrepancies between the amount of money paid each month, and how much is actually necessary to make your plan work, then the Trustee will undoubtedly file an objection.
For instance, if your Jefferson County, MO bankruptcy plan calls for monthly payments of $300, when in reality, it is necessary for you to be paying closer to $500 (so that all of your creditors are getting a sufficient amount to pay back the debt within the timeframe listed on your plan), then the Trustee will make the court aware of this fact.
Figuring out the exact calculations (or even knowing which mathematical formulas to use) is not any easy task. But this is precisely why it is so important to make sure you hire an experienced law firm to handle your case. The affordable St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have been helping people get through their difficult financial stress for over ten (10) years. Our goal is to make sure that you fully understand your options, how each chapter of bankruptcy works, and get you back on the road towards financial health.
We have two offices for your convenience: in the Central West End, at 1 North Taylor, St. Louis, MO 63108; and in the Twin Cities of Festus / Crystal City in Jefferson County, at 1000 Truman Blvd (Highway 61/67) 63019. The initial consultation is free of charge. So call today to learn more!!