Can’t Afford Chapter 13 Plan Payments? Here’s What You Should Do

Introduction:

Filing for Chapter 13 bankruptcy can be a lifesaver for those struggling with overwhelming debt. However, the repayment plan required under Chapter 13 can be a significant financial commitment that some individuals may find difficult to maintain – especially when life’s unexpected emergencies happen. 

If you are struggling to make your Chapter 13 plan payments, it is important to take action to avoid defaulting on your plan. In this article, we will explore what you can do if you can’t afford your Chapter 13 plan payments.

1. Talk to Your Bankruptcy Attorney:

If you are struggling to make your Chapter 13 plan payments, the first step is to speak with your bankruptcy attorney. Your attorney can review your financial situation and help you understand your options. They may be able to request a modification of your repayment plan or even convert your case to a Chapter 7 bankruptcy, which does not require a repayment plan.

1. Consider a Hardship Discharge:

If you are unable to make your Chapter 13 plan payments due to circumstances beyond your control, such as a job loss or medical emergency, you may be eligible for a hardship discharge. This discharge will not eliminate all of your debts, but it can provide relief for those that are causing the most financial strain.

1. Request a Temporary Suspension of Payments:

In some cases, you may be able to request a temporary suspension of your Chapter 13 plan payments. This can provide temporary relief and allow you to catch up on missed payments when you are able to resume payments.

Conclusion:

If you are struggling to make your Chapter 13 plan payments, it is important to take action to avoid defaulting on your plan. Talk to your bankruptcy attorney, seek assistance from a credit counselor, consider a hardship discharge, or request a temporary suspension of payments. Taking action sooner rather than later can help you avoid additional financial strain and ensure that you can successfully complete your Chapter 13 plan.

Please feel free to reach out for a free consultation by emailing info@tejeslaw.com, calling (407) 734-5166 or using this link to schedule an appointment yourself.

Sources:

1. United States Courts – Chapter 13: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
2. Ascend – Can I Skip A Chapter 13 Payment? 5 Options To Know: https://tryascend.com/bankruptcy/chapter-13/can-i-skip-a-payment