I've been making payments on a Chapter 13 repayment plan for more than two years. I recently fell behind on my payments and my trustee has petitioned for a dismissal. What can I expect if I go to court?
Once you get through the courthouse doors, the trustee will likely argue that your plan is no longer feasible -- that you cannot make the payments and therefore your creditors aren't getting paid and protected through bankruptcy.
You have several options depending on your circumstances:
If the court agrees with the trustee and dismisses your case, you'll owe your creditors the current balance on your debts -- that is, what you owed at the start of your bankruptcy case, less the amounts you paid through your repayment plan -- plus the interest that stopped accruing while you were in bankruptcy.
To learn more about the above options, see If You Can't Complete Your Chapter 13 Plan Payment.
by: Kathleen Michon, J.D.