The repayment plan is an integral part of your Chapter 13 bankruptcy proceedings, so must make a great effort to closely abide by its schedule. Continue reading to learn how late you can make a payment toward a Chapter 13 repayment plan and how an experienced Louisville, Kentucky Chapter 13 bankruptcy lawyer at Schwartz Bankruptcy Law Center can work to ensure you do not miss any important dates.

How frequently do I have to make payments toward my Chapter 13 repayment plan?

First of all, you and your lawyer may work together to create a proposed Chapter 13 repayment plan to be submitted to the Kentucky bankruptcy court for approval. Within this proposed plan, you may disclose how frequently you wish to send fixed payments to your bankruptcy trustee. Now, this frequency is usually biweekly or monthly, whichever one better aligns with how often you receive your regular income stream.

From here, your trustee may take your payments and distribute them to your owed creditors. This may go on for anywhere between three to five years, depending on your proposed timeline, until your owed creditors receive the entirety of what they were promised.

How late can I be to make a payment toward my Chapter 13 repayment plan?

If you fail to make your Chapter 13 payment on its scheduled date, we strongly urge you to give it to your bankruptcy trustee as soon as possible. This is because you are typically not afforded a grace period for missed payments with the Chapter 13 repayment plan.

While your trustee may offer some leniency at their discretion, they may step into action if you are more than 30 days late. More specifically, they may go as far as to file a Motion to Dismiss your Chapter 13 bankruptcy case.

What can I do to avoid making a late payment for my Chapter 13 repayment plan?

Understandably so, you may have every intention of making your Chapter 13 payments on time, but extenuating circumstances may get in your way. Whatever these extenuating circumstances may be, you must effectively communicate them with your bankruptcy trustee. With the help of your lawyer, you may be able to reach any one of the following resolutions:

  • You may be able to craft a repayment agreement to make up for all your missed payments thus far.
  • You may be able to get formal approval to temporarily defer a payment or two if sudden, unexpected expenses arise.
  • You may be able to negotiate a permanently modified repayment plan to adjust your biweekly or monthly payment amounts.
  • You may be able to apply for a hardship discharge if you cannot complete your repayment plan at all due to circumstances beyond your reasonable control.

In conclusion, if you believe you need a nudge in the right direction, you should feel comfortable turning to a skilled Louisville, Kentucky consumer bankruptcy lawyer for aid. With that being said, do not hesitate to contact Schwartz Bankruptcy Law Center.