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 North Carolina, your bankruptcy case may be dismissed by the court. This means that your creditors will no longer be bound by the court to the repayment plan that you had agreed to before filing. When your case is dismissed, your creditors can take legal action against you to collect the debt. This could include levying a lien on your property, garnishing your wages, or seizing your assets. Additionally, your failure to make payments could be reported to the credit bureau, damaging your credit score and making it difficult to get future loans. The court may also require you to provide additional financial information, such as income statements, tax returns, and balance sheets. This information will be used to determine whether you have the means to pay off your debt and if you should be able to modify the repayment terms of your bankruptcy plan. If the court finds that you are unable to pay your debt in full, you will likely be required to adjust your repayment plan. This could include reducing the amount of your payments, extending the period of repayment, or creating a payment plan that works for both you and your creditors. Ultimately, it is important to make payments on time, as failure to do so can have serious negative consequences. If you are struggling to make payments, contact an experienced bankruptcy attorney to help you explore different options.

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

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