What happens if you miss a Chapter 13 bankruptcy payment?
Jan Meriss Alfonso Assistant at Ascent Law LLC If you are in a Chapter 13 bankruptcy, you must keep your attorney informed of your current financial situation so that they can help you get back on track with your plan. Changing circumstances, such as a loss of a job or unexpected hospitalization, can make it difficult to keep up with payments. In these situations, you may have limited options for payment reductions. The attorney can help you find other ways to meet your monthly payment obligations. Chapter 7 bankruptcy if you miss a Chapter 13 payment If you are behind on your payments and can't make them, your trustee can file a motion for dismissal of your Chapter 13 case. If the court rules in your favor, your creditors will no longer receive payments from you. However, if you have already missed several payments, you can ask the court to grant you more time to catch up. Automatic stay If you miss a Chapter 13 bankruptcy payment, the court can issue a stay that prevents credit...