What If I Can’t Afford My Chapter 13 Bankruptcy Plan Payments?

Our Vegas Chapter 13 Attorneys can assist you with you debt relief needs.  In the current financial situation in Nevada, many people are unable to make their Chapter 13 plan payments.  Failing to make plan payments in a Ch 13 leads to a possible  dismissal of your case.  With dismissal, you also lose the protection of bankruptcy’s Automatic Stay.

Chapter 13 bankruptcy in Las Vegas and Henderson isn’t the most popular Chapter of Bankruptcy to file. Many filers prefer Chapter 7, as it typically requires no repayment of their debts. However, a Chapter 13 bankruptcy does grant debtors a 3-5-year grace period to pay off the extent of their debt. This is especially useful for filers who are behind on mortgage and vehicle payments, and want to avoid foreclosure and repossession of their assets. Because this is a repayment plan, Chapter 13 is only available to people with regular sources of income. The court will have to confirm your plan before you can proceed with your bankruptcy. Debtors who successfully complete their repayment plans can effectively protect their assets and property from Chapter 7 liquidation.

What are Your Options in a Henderson Chapter 13 Bankruptcy?

If you find yourself in a Chapter 13 bankruptcy and are unable to make your monthly payments to fulfill your Chapter 13 payment plan, you have a few options. You should act as soon as possible to avoid dismissal and your creditors being granted relief from the automatic stay.

1.  You can request a Chapter 13 modification in which you may be able to reduce your monthly payment to a more affordable amount. A successful modification application will result in you paying less of your unsecured, non-priority debts in your plan. This will not be an option if your debts are solely comprised of secured and priority debts and you are already paying the minimum monthly amount.

2.  Additionally, you could suspend your payments.  This is the preferred option if the financial problems you are having are temporary.  Your Nevada BK lawyer can help you with this option. You will need to be able to prove to the court that you fell behind for a good reason, and that your plan to make up for your arrearages is reasonable.

3.  Depending on your personal and financial circumstances, you may be able to convert your current chapter 13 bankruptcy to a chapter 7 bankruptcy.  This option is primarily for people who are incapable of making their plan payments. There are a few factors that could disqualify you from converting your case. If you have filed a Chapter 7 bankruptcy in the past 8 years, you will have to wait until that amount of time has passed before your case can be converted.

4. If you no longer need the protections that Chapter 13 Bankruptcy provides, you can voluntarily dismiss your case. Your payment plan will end, but so will the automatic stay. This option is not available in a Chapter 7 Bankruptcy.

If You Can’t Make Your Payments on your Ch 13 Bankruptcy, Act Quickly

Once you miss a payment in your Chapter 13 Bankruptcy, it is up to the trustee’s discretion to when your case will be dismissed. Even if your case isn’t dismissed, your creditors, who aren’t being paid when you miss your plan payments, may file a Motion for Relief from the Automatic Stay. If the judge grants this motion, your creditor will be able to proceed with garnishment, repossession, etc. despite the Automatic Stay of protection in place.

A Dismissal Isn’t Necessarily The End, Our Nevada Debt Relief Team can help.

 If your case is dismissed, you may be able to have your case reinstated if you are able to get your plan payments current. You should contact your attorney immediately if you believe you won’t be able to make your plan payment so you can prepare for your next course of action.

Trust Your Chapter 13 Bankruptcy with an Experienced Professional

Regardless of which option you may choose.  You should always seek the help of an experienced bankruptcy attorney to assure that problems don’t arise. Successfully completing a Chapter 13 Bankruptcy without attorney representation is like finding a needle in a haystack- in fact, the odds of pro se success are less than 1%. Not making your Chapter 13 payments is not the greatest position.  However, you do have options. Call our Henderson Bankruptcy Lawyers to discuss them with an experienced and knowledgeable bankruptcy attorney today.