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If you owe a thousand dollars to chapter 13 but are behind paying what will happen if you do not pay?
Wiki User
∙ 17y ago
The trustee/bankruptcy court can dismiss the chapter 13. Creditors would then be able to pursue collection including filing a lawsuit.
Wiki User
∙ 17y ago
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First and foremost, the applicant has to decide with version of bankruptcy he/she/they are filing for. There are six types: Chaper 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. The most common is Chapter 11 and the process begins with the filing of bankruptcy paperwork to the appropriate court. This is done with an attorney or a qualified paralegal. From there, the applicant appears in court to answer questions from a bankruptcy judge and with all of the evidence gathered, waits for a decision. This can happen in a matter of days, weeks, or months depending on the circumstances.
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A number of things can happen based on number of different factors. You won't have the monthly car payments anymore, so you might need to modify your plan to reflect increase your plan payments because of the lower expenses. Or it might be better to convert to a Chapter 7 or dismiss the Chapter 13. Converting to a 7 would eliminated the possibility of the car lender getting a deficiency judgment after selling the car. Most people file Chapter 13 either because the want to keep property that they couldn't keep in a Chapter 7 or because they have debt that can't be discharged, so it is time to review your situatiowith a quaified bankruptcy attorney and see if you should still be in a Chapter 13.
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