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. Most trustees will not file a Motion to Dismiss for one missed payment.

What chapter bankruptcy is the plan with no payment necessary?

Chapter 7 bankruptcy doesn’t require a repayment plan but does require you to liquidate or sell nonexempt assets to pay back creditors. Chapter 13 bankruptcy eliminates qualified debt through a repayment plan over a three- or five-year period.

How do I make Chapter 13 bankruptcy trustee payments?

A Local Court Rule of the Eastern District of Michigan U.S. Bankruptcy Court requires that the monthly Chapter 13 Plan payment be paid to the Chapter 13 Trustee via a “wage deduction order” if the person filing the bankruptcy receives a regular paycheck sufficient to accommodate it.

What happens if you fall behind on payments to a bankruptcy trustee?

Keep in mind that the trustee will take action to dismiss your case if you fall behind on your payments. Here’s an easy way to make sure that you pay the trustee on time: After the court sends you the trustee’s name, check the trustee’s website for payment instructions (or call the office). You’ll want to know:

What happens if I fail to make my bankruptcy payments?

If you fail to make your plan payments, the trustee will file a motion with the court to dismiss your case. When the trustee files the motion to dismiss, you will have a chance to review and oppose it. If you don’t oppose the trustee’s motion, the court will dismiss your bankruptcy without a discharge of your debts.

What happens if you fail to make Chapter 13 payments?

If you want to continue with your Chapter 13 bankruptcy, you must make timely plan payments to the bankruptcy trustee every month. The trustee keeps a record of all payments you make during your bankruptcy. If you fail to make your plan payments, the trustee will file a motion with the court to dismiss your case.