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A Chapter 13 bankruptcy lasts anywhere from three to five years and as most of us know-alot can happen in three to five years. The majority of debtors’ budgets are tight because pursuant to the statute they should be, so if you or your spouse lose your job, your income gets reduced, or there is an unanticipated expense you may fall behind on payments.
I always advise my clients to call me right away if they fall behind on payments-even better yet, call me if you know you are going to be missing a payment in the future.
If you only miss a payment or two or anticipate only missing a payment or two, then your attorney can most likely call the trustee’s office and get the trustee to allow your attorney sixty days to draft an agreed entry whereby you, the debtor, make up your plan payments without going over the length of your original plan.
If you miss more payments or won’t be able to make the payments in the future because of a cut in income or the like, then you may have no choice but to allow your case to be dismissed and then refile. There can be issues with refiling such as creditors seeking relief from the automatic stay invoked by filing in certain circumstances as well as running the risk of being a serial filer if you refile too many times.
If you are in a position where your case has been dismissed and you think you need to refile or is in danger of being dismissed, call Dailey Law Offices today for a free consultation.