Chapter 13 bankruptcy is a frequent type of personal bankruptcy that allows you to combine your obligations into a single, low-interest monthly payment for 3 to 5 years. The outstanding sums on your loans will be discharged at the conclusion of this time period.
If you skip a payment during your Chapter 13 bankruptcy, however, you might face catastrophic consequences. The good news is that the best bankruptcy lawyer in Upland CA can help you avoid this issue. Just call Law Offices of Terrence Fantauzzi at (909) 552-1238 for help.
Your bankruptcy might not be confirmed
The court may take many months to confirm or approve your Chapter 13 bankruptcy plan. In the meanwhile, if you don’t make your payments, your bankruptcy file may be denied.
The automatic stay will be lifted for creditors
One of the advantages of declaring bankruptcy is that it prevents your creditors from pursuing you further. This is referred to as an automatic stay. If you miss a payment, your creditors may be able to continue collection efforts like foreclosures or repossessions if you don’t pay.
Your bankruptcy could be dismissed
If you fall behind on your payments, you will be in breach of your bankruptcy plan’s provisions, and your bankruptcy may be dismissed. If the bankruptcy trustee in charge of the plan asks the court to dismiss your case, you will not be able to get the debt relief you want.
After a missed payment, the best bankruptcy lawyer in Upland CA could help you
The good news is that missing one payment does not automatically result in bankruptcy. You may be able to save your bankruptcy depending on the circumstances. If you’ve missed a few payments due to an emergency but are now back on track, you might be able to avoid being fired by making back payments to catch up with your payment plan.
If your income or expenses have changed since your Chapter 13 repayment plan was finalized, you may be able to petition the court to decrease your monthly payments to an amount you can afford. The best bankruptcy lawyer in Upland CA can help you with this.
You can try to have your bankruptcy reinstated even if it has been dismissed. For this option to work, you’ll need to act fast after being fired and catch up on your payments. If your income and assets have significantly decreased, you can pursue a Chapter 7 conversion or a hardship release. You would be able to discharge your unsecured debts in either case, but you would not be able to discharge your priority commitments, secured debts, school loans, or any other debts that are not dischargeable under Chapter 7.
Do you require assistance with a Chapter 13 bankruptcy from the best bankruptcy lawyer in Upland CA?
Please call the skilled bankruptcy attorneys at Law Offices of Terrence Fantauzzi at (909) 552-1238 if you have questions regarding Chapter 13 bankruptcy or altering your repayment plan.