When you file under Chapter 13, you will be required to make payments that are regulated by a bankruptcy trustee. In case you skip – for any reason whatsoever – to make the payments, the trustee and/ or the creditor would most likely place a request with the court to dismiss the bankruptcy filing. In such a case, what options do you have open.
According to New Jersey debt relief experts, there are plenty of options left for you to choose. Check out the top 5 alternatives and choose the one that suits you best.
Modified Chapter 13
You could request the Court to modify the payment plan to adapt to your present financial conditions. Let us say that you have lost your employment suddenly – in such a case, you not only could request for a modification, but also a reduction in the amount due as monthly payments.
Ask For More Time
Sometimes it happens that you fall into hardships after a number of regular payments under Chapter 13 bankruptcy, and you are unable to keep up with the due payments. If you have missed enough payments for your file to be on the verge of dismissal by the court, you may appeal for an extension of time. As your agent on debt relief in New Jersey would tell you, most courts would allow more time so you would not be a defaulter with the payment plan.
A hardship discharge would completely delete all your debts. However, a lot depends upon the discretion of the bankruptcy court and hence, only a bankruptcy lawyer or an expert debt relief in New Jersey agent could advise on this situation. The court would rule this way only if it feels that this is the only and best option left for all parties involved. Keep in mind that the hardship discharge does not include alimony and/ or child support; this you would have to pay.
Convert To Chapter 7
A reputed and experienced expert in debt relief in New Jersey would be able to help you appeal for conversion of Chapter 13 to Chapter 7. This would bring about a quick discharge. The debt relief agency will help you establish that under your present financial condition you are completely handicapped by the due payments under Chapter 13. Most courts would allow the conversion if you are able to show enough proof of your economical hardship.
Re-file Your Bankruptcy
With a little guidance from an able expert from any reputed New Jersey debt relief agency, you would be able to have the case dismissed. You can then again file again under the same Chapter or Chapter 7. In most cases, when this situation arises, Chapter 7 would be the logical and best option.