One of the biggest advantages that Chapter 13 bankruptcy has over Chapter 7 bankruptcy is the fact that debtors do not have to sell off their property in order to pay off their creditors. Rather, a Tennessee debtor may file for Chapter 13 bankruptcy if they have income and if they are able to create a repayment plan that is approved for their case. If a person can complete the terms of their repayment plan, then they may receive a discharge of their debts through Chapter 13 bankruptcy.

However, not everyone is able to complete their repayment plans in full. Medical emergencies, the loss of a job or other personal catastrophes may impact a person’s income and therefore their ability to keep up with their repayment plan. If a person cannot make their repayment plan payments, they may have options for keeping their bankruptcy on track.

The individual must communicate with their bankruptcy trustee if problems arise in the repayment of their debts. Their trustee may be able to help them lower or modify their payments to an acceptable level. The bankruptcy court may convert their case to a Chapter 7 case so that it may be resolved or the court may simply discharge the individual’s debts to bring the matter to a close.

Communication is a critical component to working through repayment plan issues under a Chapter 13 bankruptcy filing. For readers who have found themselves in this difficult financial situation, help is available. Consultation with a bankruptcy attorney may help those who are unable to keep up with the terms of their Chapter 13 repayment plans.