Defaulting on Chapter 13 Bankruptcy Payments

When you agree to enter into Chapter 13 bankruptcy to help remedy your financial situation, you agree to repay your creditors under an established payment plan. More importantly, you agree to make these payments in full and to do so in a timely manner.

Failure to keep up with your Chapter 13 bankruptcy payments may lead to termination of your bankruptcy protection. If you or someone you know is thinking about declaring Chapter 13 bankruptcy, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494.

Consequences of Defaulting

When you default on your Chapter 13 bankruptcy payments, your trustee, who is in charge of making sure your creditors get paid, may discharge your bankruptcy. This means that your creditors can begin contacting you about paying your debts again.

If this happens, you can declare bankruptcy again, but it is unlikely that you will be able to declare Chapter 13 bankruptcy. This means that the only way to discharge your debts is to declare Chapter 7 bankruptcy, which may require you to liquidate your assets to pay off your debts.

Before declaring Chapter 13 bankruptcy, individuals should seriously consider the requirements to make sure that they will be able to uphold their payment responsibilities.

Contact Us

Chapter 13 bankruptcy requires the filer to stay on top of his or her repayment plan. If you or someone you know is considering Chapter 13 bankruptcy, contact the Arizona bankruptcy attorneys of the Harmon Law Office, LLC, at 480-829-0494 to learn if Chapter 13 is right for you.