What happens if a debtor is unable to complete the chapter 13 payments?

March 28, 2008

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A debtor who is unable to complete the chapter 13 payments has three options:


  1. dismiss the chapter 13 case,
  2. convert the chapter 13 case to chapter 7, or
  3. if the debtor is unable to complete the payments due to circumstances for which he or she should not be held accountable, close the case and obtain a partial chapter 13 discharge as described in the answer to Question 6 above.

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