What happens if I cannot complete my repayment plan in Chapter 13 Bankruptcy?

If you cannot complete your repayment plan in Chapter 13 Bankruptcy in California, then the bankruptcy court may dismiss your case. This means that you would no longer be under a court-supervised repayment plan and all of your debts will remain unpaid. Additionally, any assets acquired while in the bankruptcy process may be taken away or repossessed by creditors. The consequences of not being able to complete a repayment plan in Chapter 13 Bankruptcy can be dire. Creditors could take legal action to recover the money that you owe them, including wage garnishment. Your credit score will also likely be negatively impacted for several years and you may be unable to obtain credit or favorable interest rates when you need to borrow money. If you are unable to complete your repayment plan in Chapter 13 Bankruptcy due to a change in your financial situation, you may be able to convert your case to a Chapter 7 Bankruptcy. Under Chapter 7, your debts are discharged and you are no longer obligated to pay them. However, you may lose certain assets and your credit score will still take a hit. It is important to understand the consequences of not being able to complete your repayment plan in Chapter 13 Bankruptcy. If you anticipate a financial hardship that could make it difficult to keep up with your repayment plan, it is important to talk to your bankruptcy attorney to explore all of your options.

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What happens if I cannot complete my repayment plan in Chapter 13 Bankruptcy?

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