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chapter repayment consumer bankruptcy
I can’t make the payments due under my Chapter 13 bankruptcy plan. What can I do?
On occasion, changed circumstances (e.g., divorce, unemployment, illness) will affect your ability to make plan payments. If you have been hit with hard times, notify your attorney immediately. If your problem is temporary, the trustee may give some leeway in meeting your payment commitment, such as reducing your payments or extending the repayment period. If it looks severe or long-lasting, the court may:
(1) modify the plan to deal with your changed circumstances; or
(2) discharge the rest of your debts on the basis of hardship; or
(3) convert to a Chapter 7 liquidation case; or
(4) dismiss your Chapter 13 case, which means you’ll owe what you owed before filing for Chapter 13, less any payments; or
(5) suspend payments.
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