What happens if I miss a payment in my Chapter 13 bankruptcy plan?

If an individual misses a payment in their Chapter 13 bankruptcy plan, it can have significant consequences. The first impact may be that the trustee overseeing the bankruptcy case will notify the debtor about the missed payment. Missing a payment can put a debtor at risk of being in default, which means they could potentially lose the protection that bankruptcy provides. The debtor should be aware that if they fall behind on payments, the bankruptcy plan may be modified or dismissed, and creditors may be allowed to pursue collection actions against them. The intent of a Chapter 13 plan is to keep the debtor on a manageable payment schedule over three to five years, so consistency is very important. It is advisable for anyone experiencing difficulty in making payments to communicate with their attorney or financial advisor. They may assist in evaluating options such as adjusting the payment plan or addressing other financial issues. For more specific guidance related to individual circumstances or the consequences of missing payments, it may be beneficial to refer to the official website of the Chapter 13 Office of North Carolina. The website can provide relevant information and resources for individuals navigating their bankruptcy plans.