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

If you cannot complete your repayment plan in Chapter 13 Bankruptcy, the court may dismiss your case and you will be discharged from your debt. The court may also convert your case to a Chapter 7 Bankruptcy, where all of your unsecured debts would be completely wiped out. If your case is dismissed, your creditors will once again be able to pursue collection action against you, such as filing legal claims or garnishing your wages. To prevent this from happening, you must file a Motion for Relief from Stay, which will request the court to allow you additional time and/or an extension of your repayment plan. If your creditor is not satisfied with your repayment plan, they may file a motion to dismiss your case or request their debt to be exempt from the repayment plans. If this occurs, you may need to negotiate a new repayment plan with the creditor that is more agreeable to both parties. If you are unable to complete your repayment plan in Chapter 13 Bankruptcy, you should seek advice from a qualified attorney to determine your best options. Depending on your situation, an attorney may be able to negotiate a better repayment plan with your creditors or help you determine if you should pursue Chapter 7 Bankruptcy.

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

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