How Do You Pay Chapter 13

Under a Chapter 13 plan, you make payments, usually monthly, to the bankruptcy trustee, an official appointed by the bankruptcy court to oversee your case. The trustee, in turn, pays your creditors and collects a commission based on the amounts paid out under your plan.

What happens if you cant afford Chapter 13 payments?

If you miss payments, a Chapter 13 trustee can file a “Motion to Dismiss for Material Default.” If this motion is granted, your case would be dismissed. If your case is dismissed, you will not get a discharge.

Can I get my Chapter 13 payments lowered?

Answer: If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can to ask the court to modify your plan and reduce your payment amount.