Published on:

St Louis Bankruptcy Attorney: What If I File A Chapter 13, But I Can’t Make The Payments?


Depending on the circumstances of your case, there are a few options available. However, it should be pointed out right away that if you are currently in a St Louis Chapter 13, there is probably a very good reason for it (like you were trying to save your house from foreclosure). And if you have fallen behind on your monthly payments, the very first thing to investigate is why exactly you’ve gotten behind.

A Chapter 13 is described as a repayment plan over the course of three (3) to five (5) years during which certain debts are paid back. Typically this would include mortgage arrearage (i.e. the delinquent amount owed on your home loan), any outstanding car loans (at an interest rate of 4.75%), most tax debt, back child support, and sometimes a portion of your unsecured debt (such as credit cards, medical bills, and payday loans).

Your attorney will set you up in a monthly plan payment that covers those debts that need to be paid back. But if you fall behind, then the Bankruptcy Trustee will file a Motion to Dismiss (especially if you fall behind by two or more monthly payments). If the reason you have fallen behind is job-related (you were fired, laid off, or your hours were cut), then it would need to be determined how soon you can start making similar income again. If you believe that your income situation will improve in the near future, then there is a good chance that the court will allow you to get caught up.


But if the reason you fell behind is because you simply cannot make the monthly payments any longer, then your options are limited to two main things: 1) you could allow your case to get dismissed, with the possibility of filing a brand new one in the future; 2) assuming you qualify, you could convert your Ch13 to a St Louis Chapter 7 bankruptcy.

To qualify for option 2, the following must apply: instead of filing the Ch13, you could have filed a Ch7 instead. In other words, to convert from a 13 to a 7, then you would have had to have been eligible for the 7 when you initially filed the 13.

But the best way to understand your rights and options, you should contact us right away!!

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

Contact Information