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Chapter 13 Bankruptcy And Job Loss

Posted By admin || 10-Apr-2009

Many debtors considering bankruptcy are reluctant to file for Chapter 13 bankruptcy for many reasons, one of them the fear of a future job loss . What if a debtor files for Chapter 13 bankruptcy and then is unable to make Chapter 13 Bankruptcy payments because of a job loss?

Well, there are some options for Chapter 13 bankruptcy debtors who face a job loss, lets take a look at a few:

  1. If you are in a Chapter 13 bankruptcy and face a job loss, you may have the option of converting your case to a Chapter 7 Bankruptcy and discharging the balance of you debts. However this option may require you to give up certain assets such as a car or home if you are unable to continue paying for them.
  2. You may be allowed to extend the duration of your Chapter 13 bankruptcy plan, giving you more time to repay the debt with a lower monthly payment.
  3. You may request a Chapter 13 bankruptcy forbearance, which would suspend your payment obligations giving you more time to find a new job. This will most likely receive the most resistance from secured creditors. Secured creditors such as a mortgage lender or car financer may demand that you return their property.

Contact a Dallas-Fort Worth bankruptcy attorney to find out more about Chapter 13 bankruptcy.

Categories: Chapter 13 Bankruptcy
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