The Short Answer
If you fall behind on your Chapter 13 payments, your case could be dismissed — and the trustee can start that process after just one missed payment. That said, you do have options: you can file a motion to modify your repayment plan, work out a way to catch up on missed payments, or convert your case to Chapter 7. The right path depends on why you fell behind and how much you owe. Contact your bankruptcy attorney the moment you realize you're going to miss a payment — the earlier you act, the more options you have.
Falling behind on your Chapter 13 bankruptcy payments can be a stressful and overwhelming experience. However, it’s essential to understand that you do have options available to you. In this guide, we’ll discuss what can happen if you get behind on your Chapter 13 payments and what steps you can take to get back on track.
If you fall behind on your Chapter 13 bankruptcy payments, you risk having your bankruptcy case dismissed. When you file for Chapter 13 bankruptcy, you’re asking the court to stop your creditors’ collection efforts so that you can reorganize your debts and pay them off over time. However, suppose you stop making your payments. In that case, you’re no longer following the terms of the court-approved repayment plan, and your creditors may be able to resume their collection efforts.
If you need to catch up on your Chapter 13 bankruptcy payments, it’s important to take action as soon as possible to get back on track. Here are some steps you can take:
- Contact Your Bankruptcy Attorney
Your bankruptcy attorney can help you understand your options and work with you to devise a plan to get back on track with your payments.
- File a Motion to Modify Your Repayment Plan
Suppose your financial circumstances have changed since your bankruptcy case was filed. In that case, you can file a motion to modify your repayment plan. This motion to modify can allow you to lower your monthly payments to an amount that’s more affordable for you.
- Seek a Forbearance Agreement
You can negotiate a forbearance agreement with your creditors, giving you some breathing room and allowing you to catch up on your payments over a set period.
- Convert Your Case to Chapter 7 Bankruptcy
If you cannot make your Chapter 13 payments, you can convert your case to a Chapter 7 bankruptcy. This can allow you to discharge most of your debts and get a fresh financial start.
While falling behind on your Chapter 13 bankruptcy payments can be stressful, it’s important to remember the benefits of Chapter 13 bankruptcy. This type of bankruptcy can help you:
- Stop creditor harassment
- Stop foreclosure proceedings
- Repay your debts over time at a more affordable rate
- Keep your assets, such as your home and car
If you need to catch up on your Chapter 13 bankruptcy payments, taking action as soon as possible is important to get back on track. Contact your bankruptcy attorney to discuss your options, including modifying your repayment plan, seeking a forbearance agreement, or converting your case to Chapter 7 bankruptcy. Remember the benefits of Chapter 13 bankruptcy and know that you have options available.
Suppose you fall behind on your Chapter 13 plan payment. In that case, your bankruptcy case may be dismissed, and your creditors may be able to resume collection efforts.
Yes, you can make up missed Chapter 13 plan payments. Contact your bankruptcy attorney to discuss your options.
Yes, you can modify your Chapter 13 plan if you fall behind on your payments. This can allow you to lower your monthly payments to an amount that’s more affordable for you.
If you can’t afford your Chapter 13 plan payments, you may be able to seek a forbearance agreement with your creditors or convert your case to Chapter 7 bankruptcy.
How many Chapter 13 plan payments can I miss before my bankruptcy case is dismissed?
There is no set number of Chapter 13 plan payments you can miss before your bankruptcy case is dismissed. The Chapter 13 Trustee could start the dismissal process as soon as you miss a single payment. Contact your bankruptcy attorney to discuss your options.
You can catch up on missed Chapter 13 plan payments over time. Contact your bankruptcy attorney to discuss your options.
If you fall behind on your Chapter 13 plan payments, contact your bankruptcy attorney as soon as possible to discuss your options and work out a plan to get back on track.
Key Takeaways
- The Chapter 13 trustee can begin the dismissal process after a single missed plan payment, so there is no safe number of payments to skip.
- If your financial situation has changed, you can file a motion to modify your repayment plan to lower your monthly payments to an amount you can actually afford.
- Converting your case from Chapter 13 to Chapter 7 is a real option if you can no longer sustain a multi-year repayment plan.
- A forbearance agreement can give you temporary breathing room to catch up on missed payments over a defined period.
- If your case is dismissed, your creditors can immediately resume collection efforts — including foreclosure proceedings that your bankruptcy had been holding off.
- Acting quickly and contacting your bankruptcy attorney at the first sign of trouble gives you the widest range of options to save your case.
Attorney Insight
The mistake I see most often is people waiting two or three months before telling anyone they've missed payments — by then, the trustee may already have filed a motion to dismiss. In North Carolina, trustees like Anita Jo Kinlaw Troxler in Greensboro and Al Overcash in Charlotte move quickly on delinquent plans; they're not going to wait around hoping you catch up on your own. The moment you know a payment is going to be short or late, call your attorney — we can often file a motion to modify before the trustee acts, which puts you in a far stronger position than trying to respond to a dismissal motion after the fact.
