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Chapter 13 bankruptcy can be an excellent tool for those struggling with unsecured debts, allowing you to catch up on missed mortgage payments and discharge some of your unsecured debts. However, keeping up with those mortgage payments is often difficult, and many borrowers fall behind.

If you’re unable to make your court-mandated bankruptcy payments, the trustee will likely seek to have your case discharged. However, an attorney can help save your bankruptcy and help you keep your head above water.

3 Options for Those Who Fall Behind on Chapter 13 Payments

1. Catch Up on Arrears

If you’ve fallen behind on your payments because of a temporary financial hardship, the court may grant you a little more time to pay back your arrears and get back on track. After explaining your situation to the court, they may even add a separate payment plan to cover the payments you’ve missed.

2. Propose a New Payment Plan

attorneysIn some cases, your financial difficulties may be long-lasting. If you’ve lost your job or experienced a significant reduction of income, common causes of bankruptcy failures, since your plan was approved, your attorney can ask the court to modify your repayment schedule. However, this option is only viable if you’re paying debts that don’t necessarily have to be included in a chapter 13 bankruptcy.

3. Convert to a Chapter 7 Bankruptcy

If your chapter 13 payments are financially unmanageable, you may be able to convert to a chapter 7 and discharge most of your debts. Bear in mind, however, that priority debts can’t be included, and a chapter 7 won’t help you catch up on missed mortgage or auto loan payments.

 

If you’re having trouble meeting your financial obligations, the attorneys at Bueker Law Firm in Stuttgart, AR, are ready to help you reclaim your life from unpayable debt. Because they focus primarily on bankruptcy law, you can be confident this accomplished legal team will identify the best solution to your situation and guide you through the process. For more information about their bankruptcy services, visit their website now, and follow their Facebook page for more tips and insight. If you’re ready to schedule a consultation, call their offices at (870) 673-1313.

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