What happens if I can't make my bankruptcy payments?

During bankruptcy, specifically Chapter 13 bankruptcy, you agree to pay a monthly payment to the bankruptcy trustee as part of the repayment plan. These funds cover the debts you are required to repay during the bankruptcy time period. Your bankruptcy case is contingent on the repayment of these funds in a monthly manner. If you do miss a payment, this could jeopardize your bankruptcy case.

Understanding Your Options

For those in Chapter 13 bankruptcy, a repayment plan establishes the specific steps you must take to repay debt. You agree to a specific monthly payment and the court determines you can afford it. If you miss this payment, you do need to take into consideration the following.

• Contact your attorney if you are going to miss a payment so the trustee can be alerted. Plan in advance.
• If you are missing the payment due to a one time difficulty paying it, the trustee may be able to extend the terms of the bankruptcy to help you to get caught up.
• If the problem is long term, such as due to a loss in employment, the court may elect instead to stop the bankruptcy or recommend a Chapter 7 bankruptcy.

Each situation is unique. To determine what could happen in your case, work hand in hand with your attorney.

Hire an Attorney

If you are considering bankruptcy, an attorney is almost necessary. The attorney will work with you to determine how to handle missed payments. In addition, he or she will help ensure your repayment plan is actually affordable to you.