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 New York, you may risk having your case dismissed or converted into a Chapter 7 Bankruptcy. It’s important to keep up with the terms of your plan, as failing to do so will affect how your case is handled. If your Chapter 13 Bankruptcy plan is dismissed, you will no longer be able to use the Bankruptcy code to protect your assets from creditors or collection agencies. You will also have to pay any outstanding balances you have left. On the other hand, if your plan is converted to a Chapter 7 Bankruptcy, you will lose many of the protections of a Chapter 13 filing. For example, you will have to liquidate your assets in order to pay back creditors. This means you will have to give up some of your property in order to pay your creditors, so it’s important to keep up with the payments. If either of these cases occur, you may be able to refile for Chapter 13 Bankruptcy again. Additionally, it’s important to note that a failed Chapter 13 Bankruptcy may affect your credit score and future ability to file for Bankruptcy.

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

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