When your wallet’s as flat as this tire and you can’t make your Chapter 13 payments, what do you do?
Chapter 13 promised a chance to reorganize, keep what’s important, and get out of a financial hole.
But it just isn’t working.
In good lawyer style, I’ve got to tell you: it depends.
It depends on why you’re in Chapter 13; what’s happened that you can’t make the payment; and what your goals are/were for your bankruptcy case.
Is the money problem going to last?
First question: is the problem with your cash flow temporary or longer term? When the problem is an unexpected expense or a short interruption in income, your case may be easily salvageable.
Some trustees allow an informal suspension of payments, or a plan to catch up on the court approved payment plan. [Read more…]