What Happens if You Miss a Chapter 13 Payment?
When a person files for Chapter 13 bankruptcy protection, they agree to pay back a significant amount of the debt they owe by following a repayment plan set up by the bankruptcy trustee. This repayment plan is designed to reflect the amount of disposable income a debtor has, giving them the ability to make payments without too much burden on their everyday finances. However, there can be serious consequences if a debtor misses a payment while contributing to this repayment plan.
Chapter 13 bankruptcy can likely provide you with the debt relief you’re seeking. For more information about this type of bankruptcy and what benefits it may provide, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
Consequences of a Missed Payment
The repayment plan works to provide debtors a steady opportunity to pay off certain debts with the legal protection and understanding that debt discharge may be available once the plan is complete. A failure to meet payments can carry the following consequences:
- The bankruptcy trustee motioning to have the bankruptcy case dismissed
- The lost opportunity to have debts discharged
- An inability to file for bankruptcy directly after a missed payment case dismissal
After a waiting period after a dismissal, a debtor may be able to try to utilize bankruptcy again. However, depending on the circumstances, a debtor may be able to argue for a lesser punishment than case dismissal, such as additional time to pay or an extension on their repayment plan.
If you’re considering filing for Chapter 13 bankruptcy, you should consider obtaining legal assistance to help you through your case. To learn more about how we may be able to help with legal advice and representation, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.