Personal Bankruptcy

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here’s what you need to know when bankruptcy gets too expensive.

If you can no longer afford your Chapter 13 bankruptcy payments, you have a few options. You can convert your case to a Chapter 7 bankruptcy, change your payment plan, or ask the court to extend the length of your repayment period.

Converting to Chapter 7

If you can’t afford your Chapter 13 payments, you may be able to convert your case to a Chapter 7 bankruptcy. To convert your case, you’ll need to file a motion with the court and attend a hearing. At the hearing, the trustee and creditors will have an opportunity to object to the conversion.

If the court approves your request to convert, you’ll be required to follow the requirements of a Chapter 7 bankruptcy. This means that you’ll need to complete credit counseling and a means test.

Modifying Your Payment Plan

If you’re having trouble making your Chapter 13 payments, you can ask the court to modify your payment plan. To do this, you’ll need to file a motion with the court and attend a hearing. At the hearing, the trustee and creditors will have an opportunity to object to the modifications.

If the court approves your request to modify your payment plan, you’ll have to make payments according to the new terms. The modification may lower your monthly payments or extend the length of your repayment period.

Extending the Length of Your Repayment Period

If you’re having trouble making your Chapter 13 payments, you can ask the court to extend the length of your repayment period. To do this, you’ll need to file a motion with the court and attend a hearing. At the hearing, the trustee and creditors will have an opportunity to object to the extension.

If the court approves your request to extend the length of your repayment period, you’ll be required to make payments according to the new terms. The extension may lower your monthly payments or extend the length of your repayment period.

Filing a Motion to Dismiss

If you can’t afford your Chapter 13 bankruptcy payments and you don’t want to convert to Chapter 7 or modify your payment plan, you can file a motion to dismiss your case.

To do this, you’ll need to file a motion with the court and attend a hearing. At the hearing, the trustee and creditors will have an opportunity to object to the dismissal.

If the court approves your request to dismiss your case, you’ll be released from your obligation to make payments under the Chapter 13 bankruptcy. However, your creditors will still have the right to collect on their debts.

The Bottom Line

If you can’t afford your Chapter 13 bankruptcy payments, you have a few options. You can:

  • Convert your case to a Chapter 7 bankruptcy
  • Modify your payment plan
  • Ask the court to extend the length of your repayment period

If you’re having trouble making your Chapter 13 payments, you should speak with an experienced bankruptcy attorney to discuss your options. To learn more, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Published by
Law Offices of Robert M. Geller, P.A.

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