Getting past the repayment plan approval part of your bankruptcy process is often a big relief for filers. After all of the work you have done to get to this point, the last thing you want is to default on your repayment plan. Doing so could land you back at square one, with a dismissal of your bankruptcy case, or it could effectively turn your Chapter 13 bankruptcy into a Chapter 7 bankruptcy, in which you lose assets that you worked so hard to keep. 

The Trustee

After your Chapter 13 repayment plan is approved by the judge, the only party you will be interacting with (other than your lawyer) is the bankruptcy trustee. By now, you should have already met with the trustee appointed to your bankruptcy case. That is the person who receives your payments on a monthly or bimonthly schedule. Their responsibility is to ensure that your payments are paid to your creditors exactly how the repayment plan describes.

When You Do Not Pay

If the trustee does not receive your payment, they can ask the judge to dismiss your case. Regardless of the final outcome, missing a payment could be detrimental to your bankruptcy case. If the court dismisses your case, that means your bankruptcy has been canceled, and no one wants that outcome. 

In order to avoid any complications with your bankruptcy, it is smart to make your monthly repayment payment automated. You can request payroll deductions or autopay from your bank account to ensure timely payments. If you do not have your payments automated and a financial emergency pops up, you should contact your lawyer or the trustee appointed to your case to discuss your situation and why you are struggling to make your payment. 

Why You Should Pay on Time

Ultimately, you want to make all of your payments in a timely manner to increase your chances of a brighter financial future. Even better - if all of your repayment plan payments are made in a timely fashion, any debts that are leftover after you make your final payment might be discharged. As you can see, it is in your best interest to do everything you can to make your Chapter 13 repayment plan payments on time.

Are You Considering Filing For Bankruptcy?

If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

James Roswold
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James Roswold is a Kansas & Missouri personal injury, workers comp, and medical malpractice attorney.