Inability To Continue Chapter 13 Bankruptcy Payments in Miami

The inability to continue Chapter 13 bankruptcy payments in Miami can create uncertainty about what happens next. A confirmed repayment plan requires scheduled payments, but federal bankruptcy law may provide options when your finances change. A local Chapter 13 attorney can review your finances and remaining plan obligations. In certain situations, you may be able to seek a plan modification, request a hardship discharge, convert the case to Chapter 7, or ask the court to dismiss the case.

What Happens When You Cannot Keep Making Chapter 13 Payments?

Missing your planned payments can put your bankruptcy case at risk. The Chapter 13 trustee or another party may ask the court to dismiss the case when payments fall behind. Dismissal can also affect bankruptcy protections that have prevented creditors from pursuing collection activity.

Chapter 13 cases in Miami are handled by the United States Bankruptcy Court for the Southern District of Florida. Financial changes that can affect your ability to continue payments may include:

• A job loss or reduction in work hours
• A substantial increase in necessary household expenses
• An illness or other event that reduces available income
• New transportation or housing costs that strain your budget

If your Chapter 13 repayment plan no longer reflects what you can reasonably pay, a Miami attorney can help you address the problem before missed payments accumulate and create a situation.

Modifying a Chapter 13 Plan After Your Finances Change

A confirmed plan does not always remain fixed until completion. Under 11 U.S.C. § 1329, a debtor may request a post-confirmation modification before completing plan payments. This may change certain payments, adjust the time allowed for payment, or make other changes authorized by the Bankruptcy Code.

When your Chapter 13 payments no longer fit your income, we can review whether a modified plan may address the shortfall. The court may consider information such as:

• Your current income and employment status
• Necessary monthly living expenses
• Mortgage, vehicle, and other secured debt obligations
• The amount and duration of your remaining plan payments

The court must still determine whether the proposed modification satisfies applicable bankruptcy requirements. With this in mind, our bankruptcy lawyers can help organize the financial information needed to support the request.

When Conversion Dismissal or Hardship Discharge May Apply

Modification does not fit every financial situation. Under 11 U.S.C. § 1328, the court may grant a hardship discharge in limited circumstances. This may apply when circumstances beyond your control prevent you from completing the plan and modification is not practical. Creditors must also have received at least the amount required by law. You may have the option to change your bankruptcy case from Chapter 13 to Chapter 7 under 11 U.S.C. § 1307.

Conversion or dismissal can affect your property, debts, creditor rights, and bankruptcy protections. Our Chapter 13 bankruptcy attorneys can determine whether your inability to pay reflects a temporary disruption or a lasting change in income before evaluating the available procedures.

Call Us in Miami to Address Your Inability to Continue Chapter 13 Bankruptcy Payments

Your inability to continue Chapter 13 bankruptcy payments in Miami does not automatically mean that your bankruptcy effort must end. Werner, Hoffman, Greig, & Garcia can review your current finances, explain the available court procedures, and help you determine what filing may fit your circumstances. Contact us to discuss your Chapter 13 payment problem and possible next steps.