Even in the face of overwhelming debt most in Des Moines would likely say that they would want to repay their creditors. The common perception of many that file for bankruptcy is that they simply are looking for a way of getting out of paying their bills. Yet the discharge of debts only comes with a Chapter 7 bankruptcy; those filing under Chapter 13 create a payment plan with the court to pay back their creditors over several years. Creditors in these cases are allowed to review proposed payment plans to determine whether they are feasible and offer feedback regarding their own interests.
Sometimes, that feedback may be that a plan (as proposed) will simply not work. Such is the case in the ongoing ordeal of actress Lindsey Lohan's mother. Reports say that she is over $1 million in debt yet brings in an income of just over $2200 every month. She recently filed for Chapter 13 bankruptcy and submitted a proposed repayment plan for approval, yet one of her creditor's rejected it. Its reason for doing so was two-fold: first, it stated that she failed to account for the total amount that she owes in the plan. Second, it believes that in her current financial situation, repaying the debt in a timely manner is impossible.
What follows a debtor's rejection of a bankruptcy repayment plan may depend on the individual circumstances of a case. One might be asked to reformulate the plan or liquidate personal assets to help in settling liabilities. In other cases, it may be determined that one simply cannot repay all of their creditors and a Chapter 7 bankruptcy is their only option. Whatever the case may be, one's efforts may be better guided if he or she has the expertise of an experienced bankruptcy attorney to fall back on.