Legal Question in Bankruptcy in Missouri

chapter 13 default of payments

I have been in chp.13 for two yrs. I am 100% payee. All secured debts have been payed. The unsecured debts are left. I owned a business. I have now become ill and am disabled. I no longer have a business and no income. I have filed for my disability but I can only draw $520.00 per month if I qualify. My payments are$750.00 per month. I have no money and can not make payments. What now?


Asked on 4/16/99, 9:12 am

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: chapter 13 default of payments

You have several options, which you shoould discuss with your lawyer (if you don't have one, get one. Don't rely on the Trustee or the Clerk for advice). You have at least four options, depending on your facts: dismiss the case (in which case you get no discharge); ask for a Sec. 1328(b) hardship discharge; convert to Chap. 7; or modify the plan to reduce the payments and keep going, paying unsecureds something but less than they would get now.

Daniel Press

Chung & Press, P.C.

6723 Whittier Ave., Suite 302


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Answered on 4/20/99, 10:23 am
Susan Freiman The Legal Clinic

Re: chapter 13 default of payments

There are provisions for modifying the plan, and still receiving a discharge, in cases of hardship.

I suggest you discuss this with a clerk at the court, or with the trustee - unless you had a lawyer represent you in the original proceedings, in which case you must go back to him or her.

Good luck!

Susan Freiman

The Legal Clinic

P.O. Box 9407, Herzlia Street 29


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Answered on 4/20/99, 4:15 am


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