Making the Plan Work
The guidelines of an approved arrangement bind each creditor involved and the debtor. As soon as the court authorizes the arrangement, the debtor is responsible for the success of the arrangement. The debtor is required to pay regular installments to the trustee either through payroll deduction or directly. Paying through a payroll deduction will entail modification to dwelling on a set financial arrangement for an extended period of time. While verification of the arrangement enables the debtor to keep hold of assets so long as installments are made, the debtor should not acquire novel debt without seeking advice from the trustee. Supplementary debt may have the ability to compromise the debtor's capability to make the arrangement successful.
Payroll deductions is another method for the debtor to make regular installments. Payment through payroll deductions amplifies the probability that the installments will be made in a timely manner and that the arrangement will be completed. If the debtor fails to pay the installments due under the guidelines of the established arrangement for any reason, the court reserves the right to dismiss the case or change the case to fall under a chapter 7 liquidation case of the Bankruptcy Code. The court might dismiss or alter the debtor's case in the situation that the debtor does not pay any subsequent-filing domestic support obligations such as alimony or child support. The debtor may also fail to complete necessary tax filings during the entirety of the case.