What Happens If You Can’t Honor Your Chapter 13 Bankruptcy?

: Reese Baker & Associates

  Filed under: Chapter 13

Chapter 13When you have completed your chapter 13 bankruptcy filing your bankruptcy lawyer will review all of your obligations pertaining to it with you. It is important that you follow through with the bankruptcy plan as it has been designed. Circumstances in life do change though, so what do you do if your financial situation changes and you cannot follow the bankruptcy plan?

Debt Repayment Plan

You plan has been designed according to how much money you make and the amount of money you owe. If your circumstances change where you are no longer making the same money, then you will have to take immediate action to amend your repayment plan. This is done through the bankruptcy trustee who has been assigned to your case. It may be a matter of having to lower the payments. Or it may come before the courts again and they discharge the debts that cannot be satisfied under the original plant. This would be based on hardship.

If you run into difficulties getting a satisfactory solution to your change of situation, then you should consult with a bankruptcy lawyer. There may be an opportunity to resort to a chapter 7 bankruptcy. Your Houston bankruptcy lawyer will be well versed in what your options are, but it is highly important that you follow through with finding a solution, in order to keep your creditors at bay. Just giving up and ignoring your chapter 13 bankruptcy original resolution will put you back to square one of being in a financial dilemma.