What happens if you lose your job during Chapter 13?

If you lose your job during the Chapter 13 repayment period, you can petition the Bankruptcy Court for a modification or a hardship discharge. You use your income to make plan payments to the bankruptcy trustee, usually on a monthly basis.

Can a chapter 13 case be converted to a Chapter 7?

In cases where you can no longer maintain your Chapter 13 bankruptcy plan payments, your case can be converted to a Chapter 7 and your debts discharged. Please answer a few questions to help us match you with attorneys in your area. By clicking “Submit,” you agree to the Martindale-Nolo Texting Terms.

When do I need to convert my Chapter 13 bankruptcy?

And sometimes the bankruptcy court will force a conversion. Although the reasons to convert vary, many filers will consider a conversion when: the debtor filed for Chapter 13 bankruptcy primarily to keep property that isn’t wanted anymore (for example, a home or an expensive musical instrument).

What happens if a husband files bankruptcy without his wife?

If a husband files bankruptcy without his wife, only the husband’s debts are discharged. If the debts are held jointly, the non-filing wife will still owe even after one spouse has filed bankruptcy.

Can a married couple file a joint bankruptcy?

One point of clarification/explanation: When we speak of married couples “both filing for bankruptcy,” we’re talking about a joint petition in which one case is filed under the names of both parties. This keeps down the cost of bankruptcy by allowing married debtors to file a single case with a single fee.

Can a chapter 13 bankruptcy be converted to a Chapter 7?

If you can’t afford your Chapter 13 payment, you might be able to convert your bankruptcy to a Chapter 7 case. Whether you have to pass the means test to qualify for a Chapter 7 bankruptcy will depend on the rules in your jurisdiction.

What happens if we get a divorce while in Chapter 13 bankruptcy?

If you and your spouse are in a Chapter 13 bankruptcy due to income (meaning that together, you do not pass the Means Test ), there may be an option for your case to be bifurcated or split. In other words, if you pass the Means Test on your own, you may be able to convert to a Chapter 7 individually as a result of the divorce.

What happens if your spouse dies during Chapter 13?

Your case won’t be dismissed automatically if your spouse dies. However, the bankruptcy court must believe your Chapter 13 case is still feasible and in the best interest of all parties.

Can a spouse co-sign on a chapter 13 bankruptcy?

Even though your debts may be discharged through your personal bankruptcy filing, if your spouse has co-signed on any loans or credit cards, creditors can still seek out your spouse to satisfy the debt. If you are concerned about any co-signers on your debts, Chapter 13 may be an option to consider.