Defaulting (failing to make payments) on your Chapter 13 plan has many unfortunate consequences. It can lead to your creditors obtaining permission from the court to foreclose on your house or repossess your car. Or the court might dismiss your case or never approve it in the first place.
Can you make extra payments on Chapter 13?
Your monthly Chapter 13 payment amount is partially determined by your discretionary income. An increase in income, along with unchanged costs for approved essentials, means your extra funds are viewed as discretionary income. In this situation, the court can increase your monthly payments under the plan.
What is modification in a Chapter 13 case?
Loan Modification and Chapter 13 Basically, when you ask for a modification, you are requesting changes to the terms of your loan. Depending on the loan you have and the lender, you may change the monthly payment amount or extend the deadline for your missed payments.
Can a bankruptcy not be approved?
Yes, you can be denied a bankruptcy discharge but this is a rare occurrence. The most common occurrence is when a Debtor has committed a fairly serious fraud against his creditors. These are a few of the more serious issues that will lead to eventual denial of a bankruptcy discharge.
What is a hardship discharge in a Chapter 13?
A hardship discharge is a discharge the court grants you before you complete all of the required payments under your Chapter 13 repayment plan. You failed to complete your payments because of circumstances beyond your control.
What makes you eligible for Chapter 13 bankruptcy?
To qualify for Chapter 13, you will have to show the bankruptcy court that you will have enough income, after subtracting certain allowed expenses and required payments on secured debts (such as a car loan or mortgage), to meet your repayment obligations.
Can a property be sold in a chapter 13 bankruptcy?
A debtor can keep nonexempt property that would otherwise get sold in a Chapter 7 bankruptcy (but the debtor will need to pay for the nonexempt portion in the three- to five-year repayment plan). You won’t qualify for Chapter 13 bankruptcy if your secured and unsecured debts exceed certain amounts. (The debt figures change every three years.
Can a chapter 13 bankruptcy be converted to a Chapter 7 bankruptcy?
Proceeding with Chapter 7 bankruptcy and receiving a bankruptcy discharge are two different things. Just because you pass the means test and have a right to voluntarily convert your Chapter 13 to a Chapter 7 bankruptcy case doesn’t mean that you’re entitled to a discharge of qualifying debt. Why?
Who is not eligible for Chapter 7 bankruptcy?
A debtor whose income exceeds the Chapter 7 means test maximum isn’t eligible to receive a Chapter 7 discharge and wipe out qualifying debt. A homeowner who is behind on a mortgage payment can pay the arrearages over three to five years and keep the house (the same holds true for an overdue car payment).
