payment reduction

Late on Chapter 13 bankruptcy payment. What now?

Late on Chapter 13 bankruptcy payment. What now?

Key takeaways

  • The court could dismiss your case or change it to a Chapter 7 if you’re late on your payment.

  • You can request a payment reduction if you’ve been faced with an unexpected financial hardship.

  • If you miss a payment or think you could be late in the future, reach out to your bankruptcy trustee or your attorney immediately and let them know.

chapter-13/?mf_ct_campaign=aol-synd-feed&utm_content=syndication#:~:text=The%20Bankrate%20promise&text=Chapter%2013%20(also%20called%20a,from%20three%20to%20five%20years.” data-ylk=”slk:Chapter 13 bankruptcy;elm:context_link;itc:0″ class=”link rapid-noclick-resp”Chapter 13 bankruptcy, also known as reorganization bankruptcy, is a legal process that allows you to restructure debt to be more manageable. As part of the process, you will be required to pay creditors a portion of the outstanding debt over three to five years during what’s known as the repayment period.

At the end of the repayment plan, any remaining debt you have left will be “discharged” — meaning you are no longer responsible for paying it. In most cases, being a few weeks late on your Chapter 13 payments isn’t a problem, but delays of longer than a month can impact your chances of a successful discharge.

What happens if you miss a Chapter 13 plan payment?

Skipping a Chapter 13 plan payment can negatively impact

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