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 may have to convert your bankruptcy to a Chapter 13 bankruptcy or you may be dismissed from your bankruptcy case altogether. When you convert to a Chapter 13 bankruptcy, you will still have to make all of your payments according to the repayment plan, but you will have a new trustee and the court will monitor your payments directly. If you fail to make your payments or fail to follow the terms of your repayment plan, the bankruptcy court can dismiss your case and you will still be liable for all of your debts. Also, you may be subject to contempt of court proceedings, which could lead to fines, jail time, or both. The court may also put a lien on any of your assets, including property or bank accounts, as a form of security for your repayment plan. In the end, it is important to make all of your payments on time and in full so that you can complete your bankruptcy successfully and get your debts discharged.

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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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