' Chapter 13 Bankruptcy Payment - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Happens If I Can’t Make My Chapter 13 Payments Anymore?

One of the best things about filing for Chapter 13 bankruptcy is knowing you are taking control of your financial situation and making an effort to improve. Instead of struggling with the fear and frustration of never making ends meet, you’ll be able to meet your payment obligations and get a fresh start.

But what happens if mid-way through your Chapter 13 bankruptcy something changes and you’re no longer able to meet those obligations?

Life Goes on During Chapter 13 Bankruptcy

Chapter 13 bankruptcy repayment plans typically last three to five years. In an ideal world, your income circumstances would remain the same – or improve – and you’d be able to complete your plan without a problem.

Of course, as helpful as bankruptcy is, it doesn’t stop the world from turning and real life will continue to happen. Emergencies arise, living expenses change, and if you’re relying on income from a job to make your payments, loss of that job can derail the plan.

The bankruptcy court is well aware that three or more years is a long time and a lot can change. And while they aren’t what you’d call sympathetic to life changes, they do have systems in place to deal with unforeseen circumstances that affect Chapter 13 filers.

What are Your Options If You Can’t Fulfill Your Chapter 13 Obligations?

In general, the court has three options for dealing with your inability to meet your Chapter 13 repayment obligations.

The first is suspending your payment.

For this to happen, you’ll need to petition the court for suspension, and get your bankruptcy trustee to agree based on a valid reason. Suspensions are typically granted for a month or two. If you are working on a five year repayment plan, you’ll be able to extend your plan for no more than 60 months, so depending on the length of the suspension, an adjustment might be made to your monthly payments once they start up again.

The second option is to modify your monthly payments.

You’ll only be granted a modification if you can show a valid reason for needing one, and you’ll still need to be able to make payments on the modified plan. This is an option if your income is reduced or if you lose your job but have alternate sources of income. If you have no income, you’re better off exploring another option until your situation improves.

Finally, you might be able to convert your Chapter 13 bankruptcy to a Chapter 7.

This is the option most often used when a person has a life-changing experience in the midst of their Chapter 13 repayment plan, such as an accident that causes them to lose their ability to work. Converting to Chapter 7 means your unsecured debts are immediately discharged, so you’ll no longer be legally obligated to pay them.

To read more about the differences between Chapters 7 and 13 bankruptcies, visit Nolo.com.

It’s also possible, depending on your specific circumstances, to have your Chapter 13 case dismissed and file for bankruptcy again in the future. This is the least appealing option for most people because there are limits on the number of times you can file for bankruptcy and the more times you file the more it affects your credit.

If you’re struggling to meet your Chapter 13 repayment obligations or you have other questions about bankruptcy, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
Read More

Will Declaring Bankruptcy Affect My Spouse?

Are you considering declaring bankruptcy? Are you married? If so, you may be wondering how it will affect your spouse....
Read More

Will Filing Bankruptcy Stop Foreclosure?

Many people facing foreclosure wonder if filing for bankruptcy will help them avoid the loss of their homes. While filing...
Read More

What Causes Someone to File Bankruptcy?

People file for bankruptcy for a variety of reasons. It’s an important decision to make and one that should not...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions