What Happens If I Don't Make My Chapter 13 Payment?  

      Many times people, who have filed for Chapter 13 bankruptcy, believe that they have not other option but to make their monthly payments. However, this is not always true. There are options available.

      Nonetheless, it is always advisable to ensure that you make your monthly payments without fail. If you stop making the monthly payments, then the trustee will be forced to dismiss your case and creditors will have a field time with your property and assets.

      Just in case you do not want to make the monthly payments for your Chapter 13 bankruptcy, here are some options that are available to you.

      You always have the choice of converting your bankruptcy to Chapter 7. If this is done, you no longer have the obligation to make the payments stipulated by the trustee for Chapter 13. For instance, you filed for Chapter 13 to prevent a foreclosure on your home. However, you are still unable to make the payment, then it makes more sense to convert your bankruptcy to Chapter 7.However, before you rush to do the conversion, it is best to consult your attorney.

      As a debtor, you have the option of getting your case dismissed. This is known as voluntary dismissal and is available at any point. Supposing you filed for Chapter 13 bankruptcy to ensure that you catch up on your mortgage payments to prevent foreclosure and you managed to do so, then it does not make sense to continue being in Chapter 13.

      The last alternative available is changing the schedule of the payment, reducing the amount you have to pay monthly or extending the duration of the Chapter 13. However, there are certain limitations. For instance, the duration of Chapter 13 cannot extend beyond 5 years after you have made your first payment. However, you have the option of reducing the monthly payment if there is a reduction in the income. The process needs to be approved by the trustee of your Chapter 13 and all the creditors who receiving monthly payments from you. WelcomeToWelcomeRocketswag

 

 

    
What Happens If I Don't Make My Chapter 13 Payment?
 

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What Happens If I Don't Make My Chapter 13 Payment? )
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