After Filing for Chapter 13 Bankruptcy
If the debtor fails to make the payments due under the plan, the court may dismiss the case or convert it to a Chapter 7 case and liquidate the debtor’s property. Failing to follow through with the plan, unless a change is approved by the court, limits the debtor’s ability to file for bankruptcy protection in the future, and of course, removes the protections the failed plan had provided. At the end of the plan period, Chapter 13 debtors are eligible to discharge much of their remaining debt.
However, to the extent that they are not fully paid under the Chapter 13 plan, the debtor will still be responsible for the following:
- Certain long term obligations like mortgages;
- Debts for alimony or child support;
- Certain taxes;
- Debts for most government funded or guaranteed educational loans or benefit overpayments;
- Debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs; and
- Debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime.
While many people think of Chapter 7, and the loss of personal property, when they think of bankruptcy, Chapter 13 can be a great option that allows you to keep your property and make payments over time rather than liquidating all nonexempt assets. An experienced Chapter 13 bankruptcy attorney in Medford can help you determine the best option to best meet your personal and financial needs.
Contact Oakes Law Office, P.C. today to schedule a consultation with a member of our team.