What happens if I can't make payments in a chapter 13 bankruptcy? 24 Answers as of June 02, 2013

I want to file a chapter 13 bankruptcy, because I want to be able to come up with a repayment schedule. My concern is that I may not be able to meet that schedule. What happens if I can't? Will my bankruptcy file get dismissed?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
If you cannot make the payments called for in your Chapter 13 plan, your case will be dismissed. If you qualify, you can file a motion to have your case converted to a Chapter 7.
Answer Applies to: California
Replied: 2/29/2012
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Most likely yes.
Answer Applies to: Washington
Replied: 6/2/2013
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
If you miss Chapter 13 payments your case will be dismissed. If you know payments will be a problem, Chapter 13 is not an option. It sounds like you are near making the horrible mistake of filing pro se (always a mistake). You will learn an expensive lesson - saving a few dollars on lawyer's fees is a very costly disaster if you file pro se. A lawyer will, in counseling you, determine if Chapter 13 is doable and will help you do a proper workable budget.
Answer Applies to: Georgia
Replied: 2/27/2012
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
It is an absolute necessity to make all payments as scheduled in Chapter 13. If you do not, the case will be dismissed by the court and the stay against collection efforts will expire.
Answer Applies to: Indiana
Replied: 2/27/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, if you default on your payments your case will be dismissed and if the trustee does not think you can make payments from the start you probably will never get confirmed.
Answer Applies to: New York
Replied: 2/27/2012
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Chapter 13 is an agreement to pay your disposable income to creditors. If you cannot afford your plan payment you can ask for a payment reduction.
    Answer Applies to: California
    Replied: 2/27/2012
    Philip R. Boardman, Attorney at Law
    Philip R. Boardman, Attorney at Law | Phil Boardman
    The chapter 13 will get dismissed if you can't make the payment. You would have the opportunity to convert to a ch. 7. before it gets dismissed, though.
    Answer Applies to: Virginia
    Replied: 2/27/2012
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The first thing that must be done when you file a chapter 13 is you must be able to come up with a feasible plan that pays the things that must be paid. If you cannot do this it will not work.
    Answer Applies to: California
    Replied: 2/27/2012
    Anthony Saunders Esq., PLLC | Anthony M. Saunders
    A person who can not make their payments under a chapter 13 plan has a few options. Obviously, the best scenario it to make all your payments for three or five years and have your case discharged. But a person may miss payments due to several scenarios including the loss of employment. This can cause the automatic stay to be lifted and allow for creditors to start or continue legal proceedings against the debtor including wage garnishment and foreclosures. One step is to request a modification of your payment plan. Another option is to try for a hardship discharge. A person who is unable to pay their payments based on loss of job (beyond your control) or medical conditions, could ask for a hardship discharge - however, there are qualifications for this and you should consult an attorney before proceeding. Other options include requesting a dismissal of your case that would allow for creditors to act as though no bankruptcy was filed, or you could convert your case into another chapter, most notably a chapter 7. In either event, you should contact an attorney about your case. There are lots of items that may or may not help you and the more information you can gather the better. A qualified bankruptcy attorney should be able to assist you.
    Answer Applies to: Utah
    Replied: 2/25/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Yes, and your debts won't be discharged.
    Answer Applies to: Florida
    Replied: 2/25/2012
    Ipson Law Firm, PLLC
    Ipson Law Firm, PLLC | Michael Ipson
    If you miss enough of the payments then yes the trustee will move to dismiss your case. When you file your plan with the court you need to make sure that you are going to be able to make the payments.
    Answer Applies to: Utah
    Replied: 2/24/2012
    J.M. Cook, P.A. | J.M. Cook
    It could be dismissed or converted. Whether to file a Chapter 13 or a Chapter 7 is a decision you need to make with the help of a qualified attorney.
    Answer Applies to: North Carolina
    Replied: 2/24/2012
    The Barger Law Firm
    The Barger Law Firm | Jason W. Barger
    Yes, the trustee will file a motion to dismiss the case. Any money paid to the trustee, if not already distributed, will be returned to you. However, you will still be liable for the debt you had, minus any payments made by the trustee, prior to filing. If you don't think that you can make the payments, it is better to look at a Chapter 7. If you don't qualify for a Chapter 7 and can't make payments in a Chapter 13, you may very well be unable to take advantage of bankruptcy protection.
    Answer Applies to: Texas
    Replied: 2/24/2012
    Ferguson & Ferguson
    Ferguson & Ferguson | Jackie Ferguson Graham
    You have to have sufficient income over expenses in order for the Court to confirm your chapter 13 plan. If you don't then the Court will dismiss your case.
    Answer Applies to: Alabama
    Replied: 2/24/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If you fail to make payments on a chapter 13 plan, your case will be dismissed.
    Answer Applies to: California
    Replied: 2/24/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It will be dismissed or you may wind up converting to ch7.
    Answer Applies to: California
    Replied: 2/24/2012
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Yes or you may convert to a Chapter 7 bankruptcy.
    Answer Applies to: California
    Replied: 2/24/2012
    Debt Relief Law Center | Roger J. Bus
    The Chapter 13 Trustees closely monitor a Chapter 13 Plan before confirmation. Once a Plan is confirmed, there is some slight flexibility- you can sometimes be late on payments and the Trustee will take no action- as long as your case remains feasible and will complete within 60 months. Eventually however, if you fall too fall behind, you will receive a Motion to Dismiss for failure to make payments and the Plan will be set for hearing for dismissal.
    Answer Applies to: Michigan
    Replied: 2/24/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes, your case will be dismissed if you do not make the payments required by the Chapter 13 plan that you file and gets approved by the court.
    Answer Applies to: California
    Replied: 2/24/2012
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    No payments, no case. The trustee will move for dismissal.
    Answer Applies to: California
    Replied: 2/24/2012
    Jakob-Barnes Law Firm, LLC
    Jakob-Barnes Law Firm, LLC | Jennifer Jakob-Barnes
    An experienced attorney can help you determine before filing whether you could afford a Chapter 13 payment. And yes, if you are not making the Chapter 13 payment, the Trustee can dismiss your case.
    Answer Applies to: Georgia
    Replied: 2/24/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes, it will be dismissed.
    Answer Applies to: Michigan
    Replied: 2/24/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    First you will have to establish before your plan is approved that your income and expenses are such that you can make the payments. If not, you will not get the plan approved. And more than 80% of Chapter 13 cases filed without an attorney do not get approved due to the things you need to know to get an approvable plan before the court. If you do get a plan approved and later cannot make the payments, you would be subject to having the case dismissed for failure to make the plan payments.
    Answer Applies to: California
    Replied: 2/24/2012
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