What happens to late payments during Chapter 13 Bankruptcy?

If you file for Chapter 13 Bankruptcy in West Virginia, all late payments on secured debt (like mortgages or car loans) that you have made between the time you file and the time you receive your bankruptcy court confirmation must be paid in full. The amount you owe must be paid at least as soon as you receive a confirmation of the plan from the court. If you are behind on any secured debt payments prior to the filing of the bankruptcy, the amount to be paid is based on a calculation of the arrears determined by the court. Also, all unpaid credit card payments, medical bills, and any other unsecured debts owed prior to the filing of the bankruptcy are required to be paid through the Chapter 13 repayment plan while paying current regularly scheduled payments. The payment plan is also responsible for any late payments that have been made prior to the filing of the bankruptcy. The payment plan must be approved by the court. The Chapter 13 Bankruptcy repayment plan must be paid over a three or five-year period, depending on the court’s ruling. During this time, all missed or late payments must be paid as part of the plan. The plan must be paid in full in order to receive a discharge of the bankruptcy. If the debtor fails to make any payments on the repayment plan, the court may dismiss the bankruptcy.

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What happens to late payments during Chapter 13 Bankruptcy?

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