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Follow on Google News | In Bankruptcy, What is an Interlocutory Order? And How Much is too Much Credit Card Debt?After you have filed your chapter 13 case and you fall behind on your trustee payments, the trustee has an option to sign an interlocutory order. This allows you to take what ever you are past due and put it into a payment plan over the next...
By: Bankruptcy Means Test The downfall to signing an interlocutory order is if you miss a payment, either the interlocutory order payment or your regular payment, the trustee will dismiss your case without any further notice to you or the attorney’s office. It is very important that when you go into such an agreement that you know you will be able handle the increase for the short period of time. There is another option available for helping you get caught up. It is the modification. Since there are attorney fees associated with doing a modification, one may feel compelled to sign the interlocutory order instead. Check with your attorney’s office at anytime you feel that you need some direction, and they will be able to give you the options available to you and help you understand each option. How much is too much credit card debt? Is it $2,000 or $100,000? I’ve talked to people on both ends of the spectrum; those who can not make the minimum payments on $2,000, and those who have not missed a single payment on $100,000. So which circumstance warrants filing for bankruptcy? Surprisingly, it could be both. The person with $100,000 is most likely making a much larger sum of money than the other, but he or she is charging a greater amount as well. Minimum payments would be at least5 $3,000, which they would charge due to having insufficient cash. If they miss only one payment, the interest rate will sky-rocket to twenty-nine percent, raising the minimum payments to $5,000. Now, unable to make the minimum payments, this person would be in the same situation as the one with $2,000 of debt. For both clients then, bankruptcy may be the only way to clean up the mess. For more information visit http://www.bankrupcy- # # # Bankruptcy Means Test distributes information through its network of websites, press releases, and newsletters. End
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