Chapter 13 failure...

[themeis]

Hello;

What would happen if we were approved for a Chapter 13 and after the plan went into effect we could not afford the payments any longer? Are there options?

Our primary purpose for filing a Chapter 13 is to keep our house - could they foreclose?

Thanks.

[shark66]

The short answer is "yes". If one fails to complete the plan and gets dismissed, the hunting seasons for creditors of all kinds - mortgage holders included - opens.

For this very reason one must be extremely careful when planning their life prior to going into Ch. 13...let alone everything else.

The "long" answer would really depend on what bank you're dealing with, and the details of your property value, along with how/when/why the plan failed.

But let's be optimistic, shall we? You'll come out with a good plan and succeed!

Good luck.

[themeis]

After the Fact..

Could I convert to a Chapter 7 if the Chapter 13 Failed?

Thanks.

[debtinohio]

Yes - you can convert if you qualify - talk to your attorney, they will charge you to convert your case.