The most common objection in your Chapter 13 bankruptcy plan is that the plan is not in good faith. This is where the creditor feels you either are unable to make the payments or that you were not honest in your filing.
The second most common objection from a creditor is that the plan is not feasible. This is where your creditors think you will be unable to comply with the repayment plan or you will be unable to make your payments. Your creditors may question:
- Your job stability
- Whether you have outside sources of income
- If your business is failing
- If your plan is based on making the payments from the proceeds of a sale
- If you owe back child support or alimony
- If your plan includes a balloon payment
- If you were convicted of a crime and possibly face jail time
Other objections are the plan is not in the best interest of the creditors. When you file Chapter 13, you must pay your creditors as much as they would have received if you filed Chapter 7 bankruptcy. Generally, the repayment should be as much as the value of your nonexempt property.
The plan unfairly discriminates, your plan must include what unsecured creditors will be paid and how much. A creditor may object that they were unfairly moved to the bottom of the priority list and therefore get less.
A Rio Grande bankruptcy lawyer will help you with all these objections and create a plan that will get you financial relief while being fair to your creditors.