What happens if I fail to make payments under my Chapter 13 Bankruptcy plan?

If you fail to make payments under your Chapter 13 Bankruptcy plan in California, you may face serious consequences. Depending on the stage of your bankruptcy plan, the court may decide to dismiss or convert your case to a Chapter 7 bankruptcy. In either scenario, your creditors will be allowed to collect their debts and you may be subject to collection actions. If your case is dismissed, all the debts that remain after a Chapter 13 bankruptcy are the same debts you had before you started the bankruptcy process. Any debts that were discharged in your bankruptcy case can no longer be collected, but the creditors can still collect the other debts. If your case is converted to a Chapter 7 bankruptcy, the court will either dismiss or discharge (eliminate) the remaining debts. If the court dismisses the case, your creditors will be allowed to immediately begin collection efforts on the non-discharged debts. If you have any assets, they may be liquidated to the creditors to pay off the debts. When filing for bankruptcy, it is important to make all payments that are outlined in your repayment plan. If you fail to make payments, you may face serious consequences, so it is important to remain diligent in your duties as a debtor. It is advisable to talk to a qualified bankruptcy attorney if you are unsure about the implications of missing payments on your Chapter 13 Bankruptcy plan.

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What happens if I fail to make payments under my Chapter 13 Bankruptcy plan?

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