What Happens if you lose income while in a Chapter 13 Repayment Plan?
Posted By
Majed on Sep 7, 2011 7:00am PDT
Chapter 13 repayment plans are based on a debtors income and debt at the time he or she files for bankruptcy. Typically, these repayment plans range from three to five years and are the same throughout.
What happens if you are no longer able to make your payments to a creditor, as agreed?
The first thing you need to do is contact your attorney to let him or her know that your income is in danger or has decreased. You may be able to modify your agreement with your creditors or possibly convert your chapter 13 to a chapter 7.