What to do if I missed payments on my Chapter 13?

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What to do if I missed payments on my Chapter 13?

Asked on January 30, 2013 under Bankruptcy Law, Indiana

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You don't give much by way of details, however typically in such a situation, a trustee will argue that your plan is no longer feasible. In other words, since you cannot make your payments your creditors aren't getting paid and protected through bankruptcy.

Accodingly, you have several options:

  • Prove to the court that you can get back on track with your ppayments;
  • Propose an amended plan with new payments that are realistic for you to make while at the same time providing sufficient funds to your creditors.
  • Ask the court for a hardship discharge (you'll have to meet the requirements for this);
  • Convert your Chapter 13 to a Chapter 7 case.

If, however, the court decides to dismiss your case, then you'll owe your creditors the remaining balances on your debts (i.e. what you owed at the start of your case, minus the money that you paid to date, plus interest).


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