What If You Can’t Make Your Chapter 13 Payments?

 Posted on April 06, 2025 in Bankruptcy

In Chapter 13 bankruptcy, you make a payment plan to repay your debts over three to five years. Otherwise known as the "wage earner’s" bankruptcy, Chapter 13 is meant for individuals who have more debt than they can handle, but also have a regular income they can use to make reasonable payments as part of the plan. What happens if the person who filed Chapter 13 can no longer make the payments, either because they lost the income source or for another reason? An experienced Fort Bend County, TX bankruptcy attorney can advise individuals facing difficulty making their Chapter 13 payments. 

What Happens If You Miss a Chapter 13 Payment?

You must begin making payments on your Chapter 13 plan within 30 days of filing. If at any point, your payment is a few days late, this likely will not be an issue. However, if the payment is significantly late or if you missed it altogether, that would be considered a breach of your payment plan agreement with the court. It could either result in your case being dismissed, in which case your debt would not be discharged or paid up, or it could be converted into a Chapter 7 bankruptcy. 

What Can You Do If You Cannot Make Your Chapter 13 Payments?

Talk to the Trustee

If you have only missed one payment, you can talk to the trustee, who may informally agree to let you catch up on the payment.

Request a Plan Modification 

If you know you will not be able to make your payments due to a change in your financial circumstances, you can request that the court modify the plan. You will begin by explaining the reasons for your request. The court can decide to reduce your payment amount, but you will have to meet the "best efforts" test by showing that you have less income than the plan requires to pay. You may also have to give up some nonexempt property.

Lengthen the Plan Period

Another way a court may modify the plan is to extend the amount of time you have to pay it, thereby reducing the monthly amount. 

Request a Hardship Discharge 

If even a modification would not make it possible for you to make the payments, you can request a hardship discharge. It would only discharge the same types of debts that are dischargeable under Chapter 7, meaning, for example, that secured debts would not be discharged.

Convert to Chapter 7

If you are ineligible for a hardship discharge, which is only granted in limited circumstances, you may be able to convert the plan to a Chapter 7, but you would still have to pass the means test to qualify. 

Call a Fort Bend County, TX Bankruptcy Attorney 

Sometimes, people file for Chapter 13 bankruptcy and make payment plans with every intention of paying back their debts and getting a fresh start, but life happens and their circumstances change. If you are unable to meet the conditions of your Chapter 13 payment plan, speak with the experienced Liberty County, TX Chapter 13 bankruptcy attorney. Attorney Vicky Fealy of The Fealy Law Firm, PC is available for a complimentary consultation at 713-526-5220.