QUESTION
What happens if I cannot afford to file for a chapter 13 bankruptcy?
Asked on Oct 26th, 2011 on Bankruptcy - Colorado
More details to this question:
What if I cannot afford the payment for the chapter 13 bankruptcy?
17 ANSWERS
Don't you qualify for a chapter 7?
Answered on Jul 03rd, 2013 at 3:12 AM
judith runyon
I guess you can file a chapter 7?
Answered on Jul 03rd, 2013 at 3:12 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Try the means test and see if you qualify for a Chapter 7 liquidation BKY case. You must put forth a realistic plan for 13 that a court will accept; planning is CRUCIAL, so DON'T file if you CAN'T make the payments under a reasonable plan.
Answered on Nov 02nd, 2011 at 12:52 PM
If you cannot afford Chapter 13, then you have to resolve your debts in a non-bankruptcy context.
Answered on Oct 27th, 2011 at 11:04 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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The attorney may allow you to make payments over time.
Answered on Oct 27th, 2011 at 2:03 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Then you cannot complete the chapter 13 and the case will be dismissed.
Answered on Oct 27th, 2011 at 1:57 PM
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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Sure. If you intend to hire an attorney, you should get them to include their fees in the plan. It saves to pay the filing fees. It's only $274 .
Answered on Oct 27th, 2011 at 2:34 AM
Glen Edward Ashman
If you cannot afford the payment then you can't file one.
Answered on Oct 27th, 2011 at 1:29 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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You would have the option of filing a ch. 7. If neither type of bankruptcy works for you, you can try to negotiate settlements with your creditors. You might be well served to sit down with an attorney to go over your options.
Answered on Oct 26th, 2011 at 10:47 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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As I understand your question you are unable to make your monthly Chapter 13 plan payment. Failure to pay timely pay your Chapter 13 plan payments is cause for your case to be dismissed. If your case is dismissed, you will be back to square one and the automatic stay will be terminated. You should call your attorney and your Chapter 13 trustee immediately to let them know if you are going to be late on your payments. The Trustee may allow you to skip a payment (although you will be required to make up the payments), or pay late, etc. If you do not make your payment and are not in touch with the Trustee to make some sort of arrangements it is only going to be a matter of time before the Trustee notices and files a motion to dismiss the case for non-payment under the Plan.
Answered on Oct 26th, 2011 at 5:35 PM
If you file a Chapter 13 plan that you cannot afford, the court will dismiss your case because the plan is not "feasible."
Answered on Oct 26th, 2011 at 5:23 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you have disposable income to file a chapter 13 you can propose a payment plan. Filing cost is $281. Some attorneys are willing to put all their legal fees into the plan payment.
Answered on Oct 26th, 2011 at 5:21 PM
Bankruptcy Chapter 11 Attorney serving Dacula, GA
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Chronister Law Firm, LLC
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If you cannot afford to pay the filing fee for a Chapter 13 bankruptcy, you should check with the bankruptcy court in your jurisdiction concerning their procedures to make the filing fee in installments. This is available through the Federal Bankruptcy Rules and local General Orders. However, if you are unable to afford the filing fee for a Chapter 13, then it may be an indicator to the Trustee that you cannot afford any plan payment you file with the court; making your filed plan unfeasible. If your intention is to stop a foreclosure or repossession only and you have no intention of following through with the Chapter 13 process, then the Trustee could file a bad faith claim against you; preventing you from refilling for a minimum of 180 days.
Answered on Oct 26th, 2011 at 4:35 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Chapter 13 is a debt consolidation and partial repayment plan. The amount of the payment is based on what you can reasonably afford to pay given your budget. If your ability to pay goes down during the repayment term because of less income or higher living expenses, the amount of the payment can be adjusted. The other type of bankruptcy is chapter 7.
Answered on Oct 26th, 2011 at 4:15 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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A Chapter 13 bankruptcy case is more involved than a Chapter 7 case. It requires a Chapter 13 plan. The Court will not confirm a Chapter 13 plan unless you can afford it. However, through the Chapter 13 plan, unless you have excessive unexempt property, you generally pay only what you have *left over* after you make your monthly reasonable living expenses (not including payments on your debts, such as credit cards since they will be discharged through the 13). Since by definition what you usually pay is only what you have left-over at the end of the month, if you truly have nothing left-over, you have to tighten your belt at least to make some token payment (usually around $100/month).
Answered on Oct 26th, 2011 at 3:51 PM
Bankruptcy Attorney serving Atlanta, GA
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Jakob-Barnes Law Firm, LLC
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If you cannot afford the Chapter 13 payment you cannot move forward with the Chapter 13 plan. You may be able to convert to a Chapter 7 bankruptcy and get a discharge from your unsecured debt. If you cannot afford it base on the property you are trying to keep, you may be able to surrender some property and get a lower payment.
Answered on Oct 26th, 2011 at 3:50 PM
Daniel James Wilson
A requirement of a confirmable Ch 13 plan is "feasibility." That means, Do you have enough income to make the proposed plan payment. To greatly simplify, your plan payment in a 13 is your "Monthly Disposable Income." That is calculated beginning with your gross income, deducting your payroll taxes, and deducting amounts reasonable necessary for the maintenance of the household. Your plan payments must be large enough to fully repay your priority debts, usually tax debt. Perhaps a Ch 7 would be more appropriate for you.
Answered on Oct 26th, 2011 at 3:41 PM