It is not uncommon for clients to miss a Chapter 13 payment for one reason or another. Just because you’re in a bankruptcy doesn’t mean life stops throwing you curve balls. Clients often have vehicle repairs that need to be done, or emergency visits to the doctor—any numerous financial surprises can get in the way of making a payment on time.
Modifying The Plan
Fortunately, the Chapter 13 bankruptcy court is interested in seeing people succeed. If you miss a payment, quite often the easy answer is to make the payment as soon as you can. If you miss multiple payments, typically the trustee will file a motion to dismiss or modify the plan. If this happens, you and your attorney will attend a short hearing where the trustee will propose a plan amendment.
Post-Modification
Once your plan is modified, quite often your plan payment amount stays the same. The trustee may extend your plan, or grant a moratorium on your missed payments, or adjust the base plan to accommodate the missed payments.
Call An Attorney
A Chapter 13 bankruptcy can provide powerful relief in a way that treats creditors fairly while allowing flexibility for the individual filing bankruptcy. If you have questions about Chapter 13 bankruptcy or bankruptcy in general, please call 704.749.7747 to speak with an attorney today.