Law Office of Ginger C. Cord, PSC. - Bankruptcy
Free Initial Consultation

Local 859-963-2073

Toll Free 800-762-6916

Call Today

Pursue A Bright Financial Future
Freedom From Debt Is On The Horizon

Chapter 13 repayment plans and late payments

After Kentucky residents have filed for Chapter 13 bankruptcy and have started complying with their repayment plans, they may face a situation in which a required payment will be late. This can be very stressful for people who are in repayment as the law mandates people must follow the terms of their plans or risk dismissal of their Chapter 13 petitions.

In a majority of cases, the bankruptcy trustee sends out payments to all of a person's creditors once monthly. If the late payment occurs at the beginning of the month, and the trustee doesn't send payments out until the end of it, the trustee may not even realize the payment arrived late.

While many people pay their mortgages separate from their Chapter 13 plans, in some cases trustees require that mortgage payments be sent to them to be paid as well. If the person's late payment forces his or her mortgage payment to be late, the trustee may have more of an issue. Some trustees react by filing motions to dismiss the petitions. If this happens, the debtor can file a motion opposing the dismissal. As long as the payment was made, the debtor is likely to prevail.

Filing for bankruptcy can provide people with multiple benefits, including stopping foreclosure actions through Chapter 13 petitions. The repayment plan lasts for three to five years, giving debtors more time to catch up the back amounts they owe. Because of the importance of successfully completing the repayment plan, it is very important for debtors to try to make all of their plan payments on time as ordered. A person who is strugglingmay want to meet with a bankruptcy attorney for help.

No Comments

Leave a comment
Comment Information