What happens if you default on a Chapter 13 for failure to make monthly payments?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens if you default on a Chapter 13 for failure to make monthly payments?

Asked on April 12, 2014 under Bankruptcy Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Nothing good happens. Depending on where exactly you are in the bankruptcy process (for example: has the plan been confirmed by the court yet or not?), you could have confirmation of the plan denied; have the automatic "stay" (or bar on collections actions) lifted, so creditors can take collections actions (such as repossession or foreclosure); or even have the bankruptcy case dismissed entirely. To think about it simply: violating or breaching your obligations under the plan can potentially result in not getting the benefit of having filed bankruptcy.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption