Henderson, No. 10-03114-JDP (Bankr. D. Idaho, April 18, 2011).
When you file for Chapter 13 bankruptcy, you prepare a plan to repay your debts as much as you can. At the end of the plan, you will be able to wipe clean many debts that you were not able to pay off. By law, the plan must be 3 years long, unless you make a certain amount of money, and then the plan is usually 5 years long. If you propose a 3 year plan but the trustee, whose job it is to administer your case, believes that you have enough money to do a 5 year plan, the court will decide which would fit your situation better. In this case, David and Candice Henderson filed for Chapter 13 bankruptcy, and proposed a 3 year plan. The trustee thought they could afford a longer plan that would pay more of their debt, and he told the court his belief. The court decided that the Hendersons only had to complete a 3 year plan. The court usually sides with a bankrupt filer unless it believes there is some foul play involved.
To read the case summary for In re: Henderson see here.
If you feel you may have the need to file for bankruptcy it is important to consult with a Tempe bankruptcy attorney to get you questions answered and discuss the options available to you. It may be better for you to file a chapter 7 or a chapter 13, a qualified Tempe bankruptcy attorney can help you to determine which is best for your situation.
Stephen M. Trezza