{"id":3179,"date":"2019-09-25T13:55:15","date_gmt":"2019-09-25T13:55:15","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3179"},"modified":"2021-09-01T09:56:27","modified_gmt":"2021-09-01T09:56:27","slug":"options-on-chapter-13-bankruptcy-payments","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/options-on-chapter-13-bankruptcy-payments\/","title":{"rendered":"Options to Take If Defaulting on Chapter 13 Bankruptcy Payments"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright wp-image-3180 size-medium\" title=\"Bankruptcy Payments\" src=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-300x200.jpg\" alt=\"Bankruptcy Payments\" width=\"300\" height=\"200\" srcset=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-200x133.jpg 200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-300x200.jpg 300w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-400x267.jpg 400w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-450x300.jpg 450w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-600x400.jpg 600w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-768x512.jpg 768w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-800x533.jpg 800w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-1024x683.jpg 1024w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1-1200x800.jpg 1200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2019\/09\/euro-870757_1920-1.jpg 1920w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>A Chapter 13 bankruptcy is also called a wage earner\u2019s plan or reorganization bankruptcy. In order to qualify for Chapter 13 bankruptcy filings, debtors must show the court that they have a regular income and they are capable of committing to a repayment plan that will enable them to pay all or part of their debts in 3-5 years. \u00a0If you want to file bankruptcy under Chapter 13 of the United States bankruptcy code, talk to one of our skilled <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\"><u>Phoenix <\/u><\/a><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\"><u>bankruptcy attorneys<\/u><\/a>\u00a0in a free legal consultation so that you may fully understand how Chapter 13 bankruptcy proceedings will work to get you out of debt and what your bankruptcy options are in case you can no longer comply with your debt repayment plan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dont_fret_there_is_still_hope\"><\/span>Don\u2019t fret, there is still hope.<span class=\"ez-toc-section-end\"><\/span><\/h3><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662ecb03de8b5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662ecb03de8b5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/options-on-chapter-13-bankruptcy-payments\/#Dont_fret_there_is_still_hope\" title=\"Don\u2019t fret, there is still hope.\">Don\u2019t fret, there is still hope.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/options-on-chapter-13-bankruptcy-payments\/#Let_us_walk_you_through_these_options\" title=\"Let us walk you through these options:\">Let us walk you through these options:<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>There are several options in bankruptcy cases wherein the bankrupt debtor is unable to make the monthly payment indicated in the debt management plan. If you can no longer follow through the plan to pay your debts, you may try modifying the amount of your monthly Chapter 13 payments, temporarily stopping your chapter 13 plan payments, or converting your Chapter 13 bankruptcy case to a Chapter 7 or \u201cliquidation\u201d bankruptcy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Let_us_walk_you_through_these_options\"><\/span>Let us walk you through these options:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>Modification of monthly payments.<\/strong><\/li>\n<\/ol>\n<p>In order to modify your chapter 13 bankruptcy payment plan, you will be required to submit documentation to the bankruptcy court that shows your circumstances together with the reasons why you can no longer afford to settle your monthly debt payments according to your approved reorganization plan. \u00a0The modification may be granted if you are able to present proof of your financial problems resulting in an undue hardship.<\/p>\n<ol start=\"2\">\n<li><strong>Suspension of Chapter 13 bankruptcy payments.<\/strong><\/li>\n<\/ol>\n<p>To temporarily stop bankruptcy payments, your bankruptcy attorney must file a request with the bankruptcy court presenting proof of your financial distress and the reasons why you will be temporarily unable to pay your dues. Be aware that this is a short-term solution in the bankruptcy process and you may be required to increase your monthly installments in order to make up for the missed payments in your debt settlement plan.<\/p>\n<ol start=\"3\">\n<li><strong>Conversion to Bankruptcy Chapter 7.<\/strong><\/li>\n<\/ol>\n<p>Chapter 13 bankruptcies may be converted to Chapter 7 at any time if the filers have not received a Chapter 7 bankruptcy discharge within the last 8 years. If you want to switch types of bankruptcy midstream, there are provisions for it in the bankruptcy law. You simply file a Notice of Conversion with the court and pay a conversion fee. You must also qualify by passing a \u201c<a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/means-test\/\"><u>means test<\/u><\/a>\u201d which was designed to limit the use of Chapter 7 bankruptcy to those who cannot pay back their debts. It does this by deducting specific monthly living expenses from your \u201ccurrent monthly income\u201d (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly \u201cdisposable income.\u201d Converting to a Chapter 7 is often granted if changes have occurred in your life that makes it impossible for you to keep up with your monthly payments. It is deemed reasonable that your financial situation is affected because you have either lost your job, took pay cuts, got shortened working hours, or you have become disabled.<\/p>\n<p>If you are considering converting from Chapter 13 bankruptcy to Chapter 7, it is highly recommended that you seek legal advice from an experienced Arizona bankruptcy lawyer. Our Phoenix Fresh Start bankruptcy lawyers will make sure that your transition to a Chapter 7 bankruptcy goes without a hitch.<\/p>\n<p>If you or someone you know is finding it difficult to deal with the payments in a bankruptcy reorganization plan, contact our Phoenix Fresh Start bankruptcy attorneys to discuss your options within bankruptcy laws. Don\u2019t delay in taking the next crucial step to debt relief and financial freedom. Call us now!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Chapter 13 bankruptcy is also called a wage earner\u2019s plan or reorganization bankruptcy. In order to qualify for Chapter 13 bankruptcy filings, debtors must show the court that they have a regular income and they are capable of committing to a repayment plan that will enable them to pay all or part of their debts in 3-5 years. \u00a0If you want to file bankruptcy under Chapter 13 of the United States bankruptcy code, talk to one of our skilled [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3179"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=3179"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3180"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}