Chapter 13 and You Can’t Make Your Payments? What Now?

Sometimes you find yourself in a situation where you just can’t make the payments...

When you file for Chapter 13 bankruptcy, you reorganize your debts and promise to make payments on that debt.  But, life happens, and sometimes you find yourself in a situation where you just can’t make the payments. There are numerous reasons as to why you might not be able to make your Chapter 13 payments.

If the reason you can’t make your payment is due to something like your hours at work being reduced, this can usually be looked at by the trustee and you will likely be given more time to repay your debts.

However, if you lose your job, or are disabled, this could be long term and you might never be able to make payments on your debts.  In this case, you might be able to propose a new payment amount or you may have to ask for a discharge on your case.

There is always the possibility that you can convert your Chapter 13 to a Chapter 7 or have your case dismissed and file again at another time when you think you may be able to afford the payments.

The most important thing you should do is consult with your bankruptcy attorney and come up with a plan as soon as possible after you discover you will default on your payments.