You may not have met the Chapter 7 means test requirements, and the New York State Bankruptcy Court required you to convert your petition to Chapter 13 bankruptcy. Even if this is what happened, you may rapidly realize that Chapter 13 is not necessarily the best option for you and your current financial situation. If you fear being unable to afford this plan for much longer, please read on to discover how a seasoned Rockland County Chapter 13 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you get into a better standing.
How will my Chapter 13 repayment plan be decided?
With the help of your attorney, you may bring a proposal for a Chapter 13 repayment plan to the New York State Bankruptcy Court. You may account for your disposable income versus your remaining debts, and come forward with a fair and affordable amount to pay back to your creditors biweekly or monthly for the next three to five years. But more specifically, you must have a plan for how your secured debts will be made current and how your priority debts will be covered first.
Ultimately, the judge must find that it complies with all bankruptcy laws, it is financially feasible for you, and that none of your creditors stepped in with legitimate objections. Only then may they confirm or approve of your Chapter 13 repayment plan.
What happens if I can’t afford my Chapter 13 payments?
Even if you thoroughly thought out your proposed Chapter 13 repayment plan, once the reality of your bankrupt state sinks in, you may face the fact that you cannot afford to keep up with it much longer. Of course, you may not have intended for this to happen, but rather extenuating circumstances beyond your reasonable control caused you to take a great financial hit. Rest assured, there are several courses of action you may take before the New York State Bankruptcy Court ultimately has no choice but to rule for your bankruptcy case’s dismissal.
Mainly, you may petition the court to modify your repayment plan. Your new payment proposal may be to reduce your biweekly or monthly payment amount or extend the length of time you have to repay. Either way, these are means of reducing the financial pressure you feel every two to four weeks. Then, while you may have initially wanted to do the right thing and pay back all your creditors in whole, you may be driven to ask the court to lower the total payments due on your nonpriority unsecured debts.
To reiterate, you may have had a recent life experience that was financially taxing, such as a job loss or health scare. In this case, you may claim a hardship discharge in your Chapter 13 bankruptcy case. Or, if the shift in your finances is even more drastic, you may ask that your case be converted to Chapter 7 bankruptcy.
If this blog has deeply resonated with your personal situation and concerns thus far, please reach out to a competent Rockland County bankruptcy attorney for more information. The team at The Law Offices of Allen A. Kolber, Esq., P.C., will be glad to represent you in your upcoming legal case.
