Law Office Of Jeffrey J. Courtney
Call our office: 334-521-1454
Law Office Of Jeffrey J. Courtney
334-521-1454

Helping Clients Overcome Personal And Legal Challenges

Overcoming Personal and Legal Challenges

What Happens If You Cannot Make Your Chapter 13 Payments?

If you cannot make your Chapter 13 payments, then Alabama law allows creditors or the bankruptcy trustee to ask the court to dismiss your case. This can undo the progress you have made toward debt relief. Acting quickly with informed legal support from an Elmore County bankruptcy attorney in Wetumpka can keep your plan on track when payments become unmanageable.

At the Law Office of Jeffrey J. Courtney, LLC, we have spent over 30 years helping neighbors in Wetumpka, Montgomery and Elmore County manage financial challenges. Our commitment to the financial well-being of our clients means we take a hands-on approach, helping ensure you understand your options and receive the best legal support possible. Located in Elmore County, we work closely with Alabama bankruptcy courts to find solutions tailored to your specific situation.

Consequences Of Missing Chapter 13 Payments

Missing even one Chapter 13 bankruptcy payment can create significant problems for your entire repayment plan. The trustee managing your case expects payments to be made in full and on time. Failing to comply can lead to:

  • Accumulated late fees and penalties
  • Increased risk of case dismissal
  • Potential loss of protection from creditors
  • Repossession of vehicles or other assets
  • Foreclosure proceedings restarting on your home

The court expects strict adherence to the schedule and may grant a temporary hardship extension only if you act promptly once a payment is missed. Waiting too long could mean losing your chance to adjust the plan. The sooner you address the issue by engaging a lawyer, the better your chances are to keep your case active and avoid severe financial consequences.

What The Bankruptcy Judge Could Do

If payments are not made on time, the bankruptcy trustee may report the issue to the judge overseeing your case. Judges in Alabama prioritize fairness but must follow the law. They have the authority to:

  • Modify your repayment plan to make payments more manageable
  • Allow a brief period to catch up on missed payments
  • Dismiss your case entirely, removing bankruptcy protections
  • Convert your case from Chapter 13 to Chapter 7, which could lead to liquidation of assets

Because judges assess each case individually, every decision impacts your financial future. Having a bankruptcy attorney serving Montgomery, Alabama and the Elmore County area can help ensure your voice is heard in court. We present your situation in the best possible light and increase your chances of keeping your case active.

Creditors Reclaiming Property

When you file for Chapter 13 bankruptcy, creditors are required to stop collection efforts, including repossession and foreclosure. However, if you stop making payments, creditors can request the court to lift this protection, allowing them to reclaim your property. This means:

  • Mortgage lenders can initiate foreclosure proceedings
  • Auto lenders may repossess your vehicle
  • Creditors may resume lawsuits and wage garnishments

Local creditors know Alabama laws well, so you need a lawyer equally prepared to defend your rights.

Chapter 13 Bankruptcy Dismissal

Your bankruptcy case may be dismissed if you fail to make payments and do not seek legal assistance. This means:

  • You will lose the legal protection that prevents creditors from pursuing you
  • Debt collection efforts, including wage garnishments, lawsuits and repossessions, will resume
  • You may not be able to file for Chapter 13 again for some time, depending on court regulations

Rebounding from the financial setback can be difficult once a case is dismissed. Taking action early can help prevent these issues and protect your bankruptcy.

What You Can Do If You Miss A Payment

Consider the following options:

  • Contact your trustee for possibilities
  • Modify your repayment plan with a lawyer
  • Apply for a hardship discharge
  • Consider converting to Chapter 7

Each case is unique, and working with an Alabama bankruptcy law firm like ours can help you navigate the best course of action.

How Our Bankruptcy Attorney In Elmore County, Alabama, Can Help

If you are struggling with Montgomery, Alabama, bankruptcy issues, having an experienced advocate can make all the difference. For the duration of our time in the legal industry, we have continued to provide legal support for individuals struggling with Montgomery, Alabama, bankruptcy issues. In your stressful financial situation, we can help to:

  • Assess your financial circumstances and provide personalized feedback
  • Negotiate with creditors and the bankruptcy trustee on your behalf
  • Help you modify your repayment plan if needed
  • Represent you in court to prevent case dismissal
  • Guide you toward alternative options, including hardship discharge or conversion to Chapter 7

Our Elmore County bankruptcy attorneys have helped hundreds of people just like you regain financial stability – without judgment or pressure. We do not just file paperwork. We listen, strategize and fight for outcomes that fit your life.

Do Not Risk Your Fresh Start Alone

As much as legal processes feel daunting, you do not have to face them alone. The Law Office of Jeffrey J. Courtney, LLC understands that trying to fix missed payments without guidance often worsens the situation. Call us at 334-521-1454 or contact us online for a free consultation and put our experience to work for you. Our Wetumpka office location means we are here to help Elmore County residents find realistic solutions, not push unrealistic promises.