Even though you’ve successfully filed for Chapter 13 Bankruptcy, through no fault of your own you may still be affected by the same or different issues that made you file for bankruptcy in the first place, so you might still struggle to make your Chapter 13 repayments.
Here in no particular order are the 10 most common reasons we see for people struggling to make their Chapter 13 repayments.
1. Job loss
Understandably, if you lose your job, you won’t have any income, meaning that you won’t be able to make your Chapter 13 payments.
2. Fewer hours
Perhaps you’ve had to accept working fewer hours in order to keep your job. Or perhaps your work is seasonal, or there is much less demand for the products or services your employer provides than there was previously.
This could mean that you can’t afford your Chapter 13 repayments.
3. Part time position
Maybe you’ve had to accept a part time job in order to get any paid work at all.
Whilst working part time might be better in terms of reducing childcare, travel and grocery shopping costs, you won’t be earning as much money, meaning you’ll find it harder to make ends meet.
4. Pay cut
Perhaps you’ve had to take a pay cut in order to keep your job, or start a new job.
If your Chapter 13 Bankruptcy repayments are now more than you earn, you won’t be able to afford them.
5. Medical bills
Perhaps you’ve had medical bills to pay which you hadn’t expected, never mind budgeted for, which means that you can’t afford to make your payments.
6. Illness or medical condition
Maybe you missed work due to an illness or medical condition which meant that you couldn’t work, or you needed to take time off work to recover.
If you don’t get paid sick leave or have been off for a long time, then you won’t be able to make your Chapter 13 repayments.
7. Serious injury
Perhaps you’ve suffered a serious injury since you filed for Chapter 13 Bankruptcy, and now can’t work, and don’t know how you’re going to make your payments.
Maybe you’ve developed a disability, or your medical condition has worsened leaving you disabled, and you know you’ll never work again.
No wonder you’re worried about what you’ll do about making your Chapter 13 repayments.
9. Car or home repairs
Perhaps you’ve had a sudden emergency and had to use your repayment money to pay for unexpected car or house repairs which you couldn’t have foreseen or budgeted for.
10. Health insurance previously paid for by your employer
Perhaps you’ve had to take out your own health insurance since losing or changing your job.
You now have to pay for what your employer used to pay for, dramatically reducing your ability to make your Chapter 13 Bankruptcy repayments.
If you’re struggling to make your Chapter 13 repayments, and are worried about what you’re going to do next month, get help now.
Don’t suffer in silence – the problem can often be resolved.