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

If you are unable to complete your repayment plan in Chapter 13 Bankruptcy Law in Virginia, you will generally have to convert your bankruptcy to a Chapter 7 bankruptcy. This means that your non-exempt property will be liquidated by a court-appointed Trustee in order to pay back its creditors. If the Trustee does not recover enough money through liquidation to cover the debts owed, the remaining debts are discharged. Discharged debts are those which the debtor is no longer responsible for paying back. The Trustee will also look into your income and expenses to determine whether or not you are eligible for a Chapter 13 plan in the first place. This is known as the means test. In order to be eligible for Chapter 13 Bankruptcy, you must be able to show that you have enough income to pay back at least some of your debts. If you cannot demonstrate this, then the bankruptcy court will likely convert your bankruptcy to a Chapter 7 case. If you successfully complete a Chapter 13 repayment plan, then all of your remaining unsecured debts will be discharged and you will be free from having to make any further payments towards them. Furthermore, Chapter 13 Bankruptcy Law can also stop foreclosure proceedings and provide a plan to catch up your past due mortgage payments. No matter what, it is important to seek help from an experienced debt relief lawyer if you are unable to fulfill your repayment plan in Chapter 13 Bankruptcy. A skilled lawyer can help you better understand the bankruptcy process and explain your options for debt relief.

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

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