Perhaps one of the reasons you opted to file a Chapter 13 bankruptcy in Ohio was because you do have an income, even though it is not large enough to cover all your debts each month. While the payments are reasonable and you have been able to keep up so far, a single financial crisis could derail your efforts. We at Debra Booher & Associates Co., LPA, often advise clients about the dangers of falling behind on their monthly Chapter 13 plan payments, and what to do if this could become a possibility.
According to the Office of the Chapter 13 Trustee in Akron, you have several choices to make sending in your plan payments easier. Whether you choose to have the money taken directly out of your wages or you would rather pay online or by cashier's check, the important thing is to get the money to the trustee on time each month. But what if you miss work and do not have enough to make one of your payments?
The moment that you see this as a possibility, you should contact the trustee overseeing your case and let him or her know that there is an issue. It may be that the payment can be shifted to the end of the plan if the issue is a one-time problem. The same is true if you see that the issue may last more than one month, though.
Do not procrastinate about bringing the issue to your trustee's attention. A missed payment could lead to a bankruptcy dismissal, and if this happens, your creditors can require you to pay the full amounts due to them, as well as any interest or penalties that attend those debts. More information about Chapter 13 debt restructuring plans is available on our webpage.