For many, filing bankruptcy is an incredibly beneficial process in which they can seek much-needed relief for the debt they’ve accumulated. There are two primary options for consumers, allowing you to choose the process that best suits your specific needs. As such, you may decide that a Chapter 13 repayment plan is right for you. However, in the event that your circumstances change and you can no longer make the required monthly payments, understanding your legal options is critical. The following blog explores what you should do if you can’t afford the payments, including how to proceed and the importance of working with a Montgomery County bankruptcy attorney to help you fight for the best possible outcome.
What Should I Do if I Can’t Afford My Payments Anymore?
Whether you have incurred unexpected medical bills or a natural disaster strikes, your ability to meet your Chapter 13 repayment plan may be impacted by circumstances out of your control. As such, you may wonder how to proceed. Generally, the most important thing you can do is immediately contact your bankruptcy attorney. If you do not make your payments, your case will likely be dismissed, meaning you will not be able to get the necessary relief. Your attorney can contact the court on your behalf to help determine the best course of action for your circumstances.
How Do I Seek a Modification?
If you need to seek a modification for your payment, it’s important to understand how this process works. Generally, your attorney will file a petition on your behalf to have the monthly payments lowered. However, you’ll need to provide ample documentation of your inability to make the required payments. This can include changed income, such as a reduction following job loss or a demotion, as well as medical documentation showing that you have sustained an injury that impacts your ability to work.
Depending on your circumstances, the court may also convert your case to Chapter 7. This can occur if you now pass the means test required to qualify for this option.
What If My Ability to Pay is Permanently Impacted?
In some circumstances, such as suffering an injury that leaves you permanently disabled and unable to work, the court may decide to grant a hardship discharge. This is generally granted in situations in which you have made a considerable portion of the required payments, modification is not an option, and the situation that occurred is beyond your control.
When your ability to make your Chapter 13 payment is impacted, it can be incredibly overwhelming and stressful. However, it is critical to act quickly and connect with an experienced bankruptcy attorney with Mudrick & Zucker, P.C. Our firm understands how difficult these matters can be, which is why we will do everything in our power to help you fight for the justice and compensation you deserve. When you need help, contact our team today to learn more.
