I filed Chapter 13 bankruptcy approx 2-1/2 years ago and have fallen behind on my payments. I am 3 months late now and my attorney has given me until the end of this month to come up with money I won't have. I'm sure my case will be dismissed by the court. Does anyone have any information on what will happen at that court date? If my case is dismissed, how soon after will creditors begin calling again? Is there any hope that the court will grant me the "probation" period and allow me the opportunity to get caught up on my payments?
If you are unable to make your payments in your Chapter 13, depending on your situation (why you can't pay), your attorney can file for a Moratorium. This will give you until (a date that will be set) and then begin making payments again.
You will need to ask your attorney if you can do this. If you can't or if you already did and the Motion for Moratorium was denied, you can convert your Case to a Chapter. You would not need to make payments, but depending on your assets, this may impact your other situations.
Talk to your attorney and see what would be your best option.: Moratorium versus conversion to chapter 7.
There is a court fee for the conversion as well as some attorney's may require an additional retainer fee for this as you are adding additional services to your original retainer agreement.
As for the Creditors, if you can not make payments and a moratorium is not granted, the Trustee may move for your case to be dismissed for non-payment. Once the case is dismissed, your creditors may contact you. All parties that receive notice in your case, will receive a copy of the Order of Dismissal, if it is issued.
Good luck with whichever way you go.
