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, the court may dismiss your case and you would lose the bankruptcy protections of the Chapter 11 Bankruptcy law. This could mean that your creditors can come after you to collect what is owed to them. They may be able to garnish your bank accounts, place liens on your home, or even sue you. The court will also consider your financial situation and any hardships you have faced when deciding whether to dismiss your case or not. If you have a good explanation and your financial situation has improved, the court may give you another chance and allow you to restructure your repayment plan. In order to avoid having your case dismissed, it’s important to remain current on your repayment plan and to provide documentation of your financial hardship. You should also communicate with the court if you anticipate any problems meeting the requirement of your repayment plan. If your case is dismissed, you may still be able to file for Chapter 7 or Chapter 13 bankruptcy, but the debts you incurred in a Chapter 11 bankruptcy may not be able to be discharged. It’s important to talk to an experienced bankruptcy attorney for advice before filing for bankruptcy again.

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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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