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What happens if I fail to pay the amount of my repayment plan?

If you fall behind or fail to make payment for your repayment plan, the Trustee can move to dismiss your case. If this occurs, the debt you owe will no longer be reduced and you will not have the protection by the court from your creditors.

It is important to speak with you lawyer if you will be having trouble making a payment. If this is just a temporary problem then you may be able to work something out so that the case does not have to be dismissed. However, if it will be an ongoing problem you may need to convert the Chapter 13 bankruptcy to a Chapter 7 Bankruptcy. Of course every individuals bankruptcy is different so an attorney will need to consider your personal issues.

Categories: Bankruptcy