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 Virginia, the bankruptcy trustee may file a motion to dismiss your bankruptcy case with the bankruptcy court. The bankruptcy court will then consider the motion and may issue an order dismissing your case. If your case is dismissed, the bankruptcy protection you achieved when you filed your case will no longer be in effect, and creditors may resume collection activity against you, including suing you, garnishing your wages, or levying against your bank accounts. Once your case is dismissed, you will also no longer have the ability to propose an alternate plan of repayment, nor will you have access to any future bankruptcy protection. It is important to note that while failure to make required payments will commonly lead to the dismissal of your bankruptcy case, you may also be able to cure the default and continue with your original bankruptcy plan. In such cases, you will need to pay the arrears, make up the missed payments, and bring all your payments current within a certain period of time, usually within 90 days. If you are able to cure the default in a timely manner, the bankruptcy court may allow your plan to continue and you can remain under the protection of bankruptcy.

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

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