Squaring Your Debts: 3 Things You Can Do If You Miss A Chapter 13 Repayment Plan Payment

Times are tough lately. If you're having difficulties making payments on the debt that you owe and feel like you're slowly suffocating financially, your only option left may be to file for bankruptcy. If you have a stable and consistent income and some assets, your bankruptcy trustee or attorney will recommend that you file for bankruptcy under chapter 13. This basically means that you'll need to come up with a feasible repayment plan. You're expected to make your payments on time. This article will look at what you can do if circumstances have caused you to miss a payment.

Make Arrangements to Make the Payment Up at a Later Time or with Another Payment

If you miss one payment, but will be able to make that payment up almost immediately or within a short period of time, let the bankruptcy trustee know, and they just might let it slide. You'll need to provide information as to why the payment was missed, when the missed payment can be made, and where the money is coming from.

Extend the Plan for Longer

A chapter 13 repayment plan must be at least 36 months, but it cannot exceed 60 months. As long as your current plan is scheduled to be completed under 60 months, you can ask the bankruptcy trustee to extend your plan for a longer amount of time. This will give you more time to square up on your debts and make any payments that you have missed. If you extend your plan, you can even lower the payments you need to make.

Modify Your Plan or File for Dismissal Based on Hardship

If missing the payment will severely impact your ability to make all payments needed to complete the repayment plan, talk to the bankruptcy trustee about whether you have the option of modifying your plan or dismissing the bankruptcy charges based on hardship. You'll need to prove that circumstances have changed and that the changes are beyond your control. You'll also need to prove that switching to a chapter 7 plan will not benefit the creditors.


If you already know that there's a good chance that you're going to miss a payment in the future, it's wise to give your bankruptcy trustee or attorney notice ahead of time. They can help you work out what solution would be most affordable and financially feasible based on your unique situation. If this solution sounds right for you, then check it out here.