Filing for Chapter 13 can be a great way to get out from under overwhelming debt. But this type of bankruptcy requires you to make regular payments on a repayment plan in addition to your ongoing expenses like rent, groceries, and childcare.

If your financial circumstances change, though, making that payment could become challenging. Missing a payment can put your bankruptcy discharge at risk, so it's important to know the consequences as well as your options.

The Craig Black Law Firm has extensive experience with Chapter 13 cases and knows the challenges repayment plans can bring. If you're having difficulty making payments, I can help. When you call my office, I pick up the phone and speak to you personally. Give me a call at 678-888-1778 or complete my confidential contact form.

Consequences of a Missed Chapter 13 Payment

Missing one payment by a few days likely won't have any consequences at all. Your trustee likely has a grace period built in. But to play it safe, make the payment as quickly as possible. Once the funds are in transit, notify your trustee that payment has been sent.

Multiple missed payments can be a problem, though. If your trustee sees you as falling through on your obligations, a motion to dismiss may result. If granted, creditors will be able to resume collection efforts, and those can include foreclosures and wage garnishment.

How to Handle Missing a Payment

If you miss a payment, don't panic. Those things happen regularly in Chapter 13 bankruptcy cases. Here are some options to help you keep your bankruptcy filing on track:

• Be open with your trustee. If you can't afford to make payments, your trustee can work with you, particularly if you've suffered a hardship.
• Request a plan modification. Bankruptcy courts understand that financial circumstances can change. If that change appears to be permanent, you may be able to request that your repayment plan be modified.
• Seek a temporary hardship suspension. In some cases, courts will automatically discharge debts based on a filer's financial situation.
• Convert to Chapter 7. If your inability to make plan payments is likely to continue, the court may allow you to convert your Chapter 13 case to Chapter 7. Your debts will be discharged, but nonexempt assets may be seized to repay your creditors.
• Refile for Chapter 13. If the worst happens and your case is dismissed due to nonpayment, you may be able to refile. Your past payment failure could lead to restrictions being placed on your next bankruptcy, though.

The Craig Black Law Firm and Chapter 13

The Craig Black Law Firm has extensive experience with repayment plans and can help you understand your options. If you're under a Chapter 13 repayment plan and struggling, reach out to my office at 678-888-1778 or fill out this contact form, and I'll be in touch as soon as possible.