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What to do if you cannot make your Chapter 13 payments

When you filed your Chapter 13 petition in Washington, D.C., your debts were organized based on the amount you were able to pay based on your current income and living expenses. We at Ammerman and Goldberg Bankruptcy Law Office understand that keeping up with payments is not always easy when emergency or life-altering circumstances crop up. If this happens to you, it is very important that you address the problem right away, before you miss a payment, or your case may be dismissed and your debts reinstated.

According to the U.S. Courts, you may be eligible for a Chapter 13 hardship discharge if three conditions are met. You must have paid an amount to your creditors already that meets or exceeds how much they would have received if you had filed a Chapter 7 bankruptcy. The court must also determine that it is not possible to modify your plan. It cannot be due to your own actions that you are unable to make the payments, and changing the circumstances must be impossible for you.

Even if you do not qualify for a hardship discharge, you may still qualify for a payment plan modification that suits your new situation. For example, if you have lost your job or have a health issue, you may find yourself temporarily without income. It is important to note that debts such as student loans or taxes that would not be liquidated in a Chapter 7 bankruptcy are not eligible for a Chapter 13 hardship discharge, either. For more information on this subject, please visit our page on debt consolidation and repayment plans.

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