What If I Can’t Fulfill the Repayment Plan Under Chapter 13?
Feb. 7, 2024
Filing for Chapter 13 bankruptcy in Nevada provides individuals with an opportunity to repay their debts over a three- to five-year period while retaining their property. However, life is unpredictable, and there may be instances where you find yourself unable to fulfill the repayment plan. So, what should you do if you've missed a payment or anticipate that you won't be able to make a future one?
Attorney Scott N. Tisevich, based in Reno, Nevada, is dedicated to assisting clients through the Chapter 13 bankruptcy process and repayment plan. He extends his services throughout Churchill County, Lyon County, Carson City, Story County, Douglas County, and Las Vegas, Nevada. With a deep understanding of the challenges faced by individuals burdened with debt, he strives to provide solutions and a way forward. If you feel you cannot keep up with your payments under a Chapter 13 bankruptcy agreement, contact the Law Office of Scott N. Tisevich to discuss your options.
Missed or Anticipated Missed Payment
If you've missed a payment or foresee that you'll be unable to make one under your Chapter 13 repayment plan, it's essential to act swiftly. Ignoring the situation can lead to severe repercussions, including the dismissal of your case and potential loss of your property. Here's what you should do:
Firstly, reach out to your bankruptcy attorney immediately. In Reno, Nevada, Scott N. Tisevich, Attorney at Law, can provide guidance on the best course of action and help you understand the complex legal process.
Secondly, inform the court-appointed trustee about your financial difficulties and inability to make the payment. They may be able to work with you to modify your repayment plan or explore other options. Lastly, if your financial circumstances have changed significantly, consider a loan modification. This can help lower your monthly payment and make it more manageable.
Options When You Can't Fulfill Your Repayment Plan
If you find yourself unable to fulfill your Chapter 13 repayment plan, several alternative options are available. They include:
Hardship Discharge: Under certain conditions, you may qualify for a hardship discharge. This allows for the elimination of some debts if you can prove that you're unable to continue with the repayment plan due to circumstances beyond your control.
Conversion to Chapter 7: If your financial situation has changed drastically and you're unable to continue with Chapter 13, you may have the option to convert your case to Chapter 7 bankruptcy. This involves liquidating your assets to repay creditors.
Dismiss Case and Re-file: In some cases, it may be necessary to dismiss your Chapter 13 case and re-file at a later time. This can provide you with a fresh start and an opportunity to create a more feasible repayment plan.
An Overview of Hardship Discharge
A hardship discharge is a potential solution for individuals who are unable to fulfill their Chapter 13 repayment plan due to circumstances beyond their control. To qualify for a hardship discharge, you must demonstrate that you've experienced a significant change in financial circumstances, such as job loss, disability, or a major medical expense. Additionally, your inability to continue with the repayment plan should be unlikely to improve in the foreseeable future. However, it's crucial to note that not all debts are eligible for discharge under a hardship discharge. Debts such as child support, alimony, and taxes will generally not be discharged.
How Scott N. Tisevich, Attorney at Law, Can Help
Grasping the complexities of Chapter 13 bankruptcy can be challenging, especially when you're unable to fulfill your repayment plan. This is where Scott N. Tisevich, Attorney at Law, can provide invaluable assistance. Here's how he can help:
Experienced Guidance: With his in-depth knowledge of bankruptcy laws, Scott N. Tisevich can guide you through the process, ensuring you understand your options and rights.
Negotiations with Creditors: He can negotiate with creditors on your behalf, exploring alternative arrangements and advocating for your best interests.
Modification Assistance: If you need to modify your repayment plan, he can assist in preparing the necessary documentation and presenting your case to the court.
Representation in Court: In the event of a hardship discharge or conversion to Chapter 7, he will represent you in court, presenting your case effectively and increasing your chances of a favorable outcome.
When facing challenges in fulfilling your Chapter 13 repayment plan, it's crucial to seek professional legal advice. The Law Office of Scott N. Tisevich can help you explore your options, protect your rights, and work towards a more manageable financial future. Contact him today for trusted legal guidance and assistance.