What happens when I fail to make a payment in a Chapter 11 bankruptcy?

When you fail to make a payment in a Chapter 11 bankruptcy in New York, there are two possible outcomes. First, if you fail to make the payment within a specified amount of time, the court can deny your bankruptcy petition and your creditors can continue seeking payment from you and your assets. Second, the court can also convert the bankruptcy to a Chapter 7, which can allow your creditors to take possession of your assets, if it is determined that you no longer have the ability to pay off your debt. This is known as liquidation. In a Chapter 7 bankruptcy, your assets are sold off to pay your debts. Anything remaining after the debt is paid off will be divided among your creditors. Your creditors could also decide to dismiss your case if they believe you are no longer able to pay back the debt. This means you would not have to repay the debt, but you could still face consequences such as a debt collection lawsuit from the creditors. Filing for bankruptcy is a serious decision and failing to make payments in a Chapter 11 bankruptcy can result in serious consequences. It is important to keep in mind that if you do not make your payments as required, your bankruptcy petition may be dismissed or converted to a Chapter 7 bankruptcy. Be sure to research the options available to you and consult with a professional before filing for a bankruptcy.

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What happens when I fail to make a payment in a Chapter 11 bankruptcy?

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