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:
- 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.
- 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.
- 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.