Are You Having Trouble Making Chapter 13 Bankruptcy Payments?
For those seeking to take charge of their debt through filing chapter 13 Bankruptcy, the chapter 13 plan is the crux of their bankruptcy case, as explained by NOLO. Yet, completing a repayment plan in this case is difficult. For instance, suppose an individual is faced with a financial emergency, serious health issue or other unforeseen circumstance that causes them to fall behind on their payments. What options are available for debtors having trouble making their chapter 13 Bankruptcy payments?
For anyone facing dismissal of his/her bankruptcy case due to default payments, it’s important to understand that it is possible to reach a new agreement by speaking to the bankruptcy trustee. This agreement can help a person get current on their payments, particularly if he or she provides a compelling argument regarding their situation.
However, in the event that a debtor loses his or her job, it is possible that a repayment plan can be modified. In this case, an individual can petition the court to reduce monthly payments, and he/she can even propose a new payment amount. To do so successfully, the debtor will need to provide documentation of the change in their financial circumstance.
When a payment modification isn’t possible, and an individual cannot continue with his/her chapter 13 Bankruptcy due to financial reasons, he or she might be approved to receive a hardship discharge. As such, the court analyzes the person’s financial situation and determines what is in the best interest of creditors. If a hardship discharge is not granted, individuals may consider switching to a chapter 7. For some, this makes sense, as it allows the trustee to sell one’s nonexempt property. In addition, all of the person’s qualifying debt will be wiped out.
Even so, when all else has failed, a debtor may allow the court to dismiss their bankruptcy case, so that he/she can file again.
Call Gingold & Gingold, LLC for the Personal Attention You Need and Deserve
While filing for bankruptcy gives a sense of relief for many hoping to eliminate their debt and move on with their lives, it is incredibly stressful when one cannot meet the requirements of his/her payment plan. If your circumstances have changed since filing chapter 13 Bankruptcy, and you are struggling to make payments or have fallen behind, the experienced team at Gingold & Gingold, LLC are here to help.
For the personal attention you need and deserve, call Gingold & Gingold, LLC today to schedule a confidential consultation.