What happens if you miss a Chapter 13 bankruptcy payment?

It depends on the situation, but it can result in some additional fees or even a potential dismissal of your case. I recommend that you speak with a bankruptcy lawyer immediately if you fall behind on your Chapter 13 payments or other secured payments being made outside of the Chapter 13 plan.

In order to be eligible for a Chapter 13 bankruptcy, you must meet certain criteria. One of those is that you must have a regular income that allows you to pay back your creditors over time. That doesn't mean that you need to make the same amount every month, only that there should be some sort of regularity—you can't just make more in December than in May and then nothing at all until February. If you're on an income-based repayment plan, you'll need to have sufficient income to cover the projected monthly amount due each month.

If the court determines that there's been non-payment (or insufficient payment) due to either insufficient income or other reasons, it can dismiss your case and require you to refile—and if a dismissal has already happened once before, it's possible that another could mean your debts will never be discharged. This can all happen without any warning, so if you start missing payments, contact your trustee immediately so they know what's going on and can attempt to work something out with the court or creditors.

Missing a Chapter 13 bankruptcy payment is an expensive mistake to make. It can cost you thousands of dollars and even land you in trouble. Fortunately, it's also easy to avoid this fate with a little planning. Call this law firm if you have any questions about a Chapter 13 bankruptcy in Utah.

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/chapter-13-bankruptcy/

 

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