Chapter 13 bankruptcy is another type of debt management, and it is done by consolidating your debt into one reasonable payment under the protection of bankruptcy and protection from the creditor’s harassment. Many times people who want to file for bankruptcy and hope to have all of their debt wiped away are unable to have that happen because of the carious exceptions to debt elimination. This would include debt like student loans or child support, etc. Under Chapter 13, a person has the ability to consolidate those loans that otherwise would not be cancelled out in another form of bankruptcy.
There are a few reasons for which a person will choose to terminate their bankruptcy early, either willingly or unwillingly. When a person files for bankruptcy and the court determines your specific amount due each month, if something happens that makes you unable to even make those lower payments that may be grounds for you to terminate the Chapter 13. If this is the case of you being unable to make the payments, you would want to contact your bankruptcy attorney to contact the court.
Due to your inability to make the payments while under Chapter 13, your attorney would file with the court for the permission to change your bankruptcy into a Chapter 7, in which your debt will be liquidated. Student loans and court debt won’t be discharged, but any debt that was acquired through credit card, etc. will be and it will make your monthly payments significantly less. In the even that you were continually missing payments under your Chapter 13, the court also has the right to terminate your case early as well. If this happens, you will basically be left in the state of debt you were in the beginning of your situation.
If you are struggling with making your debt payments, it is important that you contact an attorney as soon as possible in order to make sure that you can take action before the court completely drops your case. If you are noticing a trend of not being able to make your Chapter 13 payments consistently, contact a bankruptcy attorney as soon as possible to discuss the best steps to take next. Hope is never lost when dealing with debt, it just may take some extra work to get to the road of recovery.
While no person wants to admit that they are struggling with debt, it is important to know that you are not alone, it’s what you do about your debt that makes the big difference. If this is you, and you are feeling overwhelmed, contact Malaise Law Firm today to discuss your situation and the best possible option for you. We have years of experience and are ready to help you on the way to financial debt freedom. Call today for more information!