Chapter 13 Bankruptcy: What Happens When You Fall Behind on Payments?

December 3rd, 2012 by Reed Allmand

Your Chapter 13 bankruptcy payment should be a priority each month and as a debtor, that is an important responsibility to uphold.  This includes knowing when your payment is due and the amount.  The repayment plan helps in getting finances back in order and upon obtaining approval, you make good on your promise to the court in keeping up with payments on time.  If you feel you will not be able to make your next payment for whatever reason you should contact your attorney or trustee.

Your attorney or trustee should be your first point of contact if making a payment becomes an issue.  It’s understandable you want to know things before they happen.  Yet there are times when things happen that are out of your control.  Whether it’s a job loss, family emergency or you obtained a major expense, when your finances experience a major impact you should contact your attorney or trustee as soon as possible.

The sooner you report to your attorney, the more time can be allotted to revise your repayment.  It’s possible to have a request put in to temporarily reduce payments depending on your situation.  The court may look to dismiss your case unless you are able to makeup missed payments.  If your case gets dismissed you will be responsible for outstanding debt not paid.  In some cases the attorney may be able to set up a payment plan to help you make missed payments.  The debtor may be able to take advantage of other options if they report their inability to make payment as soon as possible.



About Reed Allmand


Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand


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