What happens if I fail to meet the terms of my repayment plan in a Chapter 11 bankruptcy?

If you fail to meet the terms of your repayment plan in a Chapter 11 bankruptcy, you will likely have to face the consequences. The court has the right to end your repayment plan and require you to pay the full amount owed in one lump sum. This could be especially difficult if you are already having trouble making payments. The court may also dismiss your case if you fail to meet any of the terms of the repayment plan. This would mean that all of your creditors would be allowed to collect from you without going through the bankruptcy court. You would also be responsible for all of the costs associated with the case, including legal fees. If the court finds that your failure to make payments was intentional, they could also charge you with fraud. This could lead to criminal charges which could result in jail time. Finally, it is important to understand that if you are granted a Chapter 11 bankruptcy, the court will require you to provide regular updates to the court on your finances to ensure that you are continuing to make your payments. If you fail to provide these updates, the court can also dismiss your case. Therefore, it is important to understand the terms of your repayment plan and take steps to ensure that you are able to meet them. If you cannot, contact your attorney to discuss possible alternatives.

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What happens if I fail to meet the terms of my repayment plan in a Chapter 11 bankruptcy?

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