I can’t make the payments on
my chapter 13 plan, what happens?
If you do fail to make your payments, the
Chapter 13 trustee will file a motion to dismiss your case.
You can catch-up your payments prior to the hearing on
dismissal or propose a catch-up plan with the Trustee to
cure the arrearage. If you cannot make the payments because
they cut your hours at work and will continue to make less
throughout the course of the plan, you may be able to file
a motion to amend chapter 13 plan. The plan may be able to
be extended or the unsecured creditors may get a reduced
payment. However, if you are already at the maximum five
years and are paying secured debt only, you may not be able
to amend. In that case, a solution is to try to find a
second part-time job, have a family member chip in with
household expenses, get a roommate to pay rent, or whatever
it takes to get that extra income in the house to pay for
the plan. If your case is dismissed, you are back in the
position where you started before you filed. The creditors
are now free to pursue their debts, again. You may be able
to re-file a chapter 13, however, you must demonstrate an
ability to pay and justify to the court why your case will
work this time.