If you’re in a Chapter 13 bankruptcy and struggling to keep up with your monthly plan payment, you’re not alone.
Many people ask:
“What happens if I miss a Chapter 13 payment?”
“Will my case be dismissed?”
“Will I lose my house or car?”
“Can the payment be lowered?”
Chapter 13 can be a great tool for catching up on debt and protecting assets — but it’s also a long process, and life happens.
Here’s what typically happens if you can’t make your payments.
First: Missing a Payment Is Serious — But It’s Not Always the End
A missed Chapter 13 payment does not automatically mean your case is over.
However, it can trigger action from:
- the trustee
- creditors
- the court
The sooner you address it, the more options you may have.
What Happens If You Miss One Payment?
If you miss one payment, the trustee may:
- send a warning notice
- request you catch up quickly
- file a motion to dismiss if payments don’t resume
Many trustees allow a short period to catch up, especially if the missed payment was due to a temporary issue.
What Happens If You Miss Multiple Payments?
If you fall behind more than one month, the risk becomes much higher.
The trustee may file a Motion to Dismiss your Chapter 13 case.
If the case is dismissed:
- creditors can resume collection
- lawsuits can restart
- wage garnishments can resume
- foreclosure can continue
- repossession can occur
This is why it’s important not to ignore missed payments.
Will I Lose My House or Car?
Possibly, depending on why you filed Chapter 13.
If you were behind on your:
Mortgage
Chapter 13 often protects your home by allowing you to catch up on arrears. If the case is dismissed, foreclosure protection ends.
Car Loan
If you were catching up on car payments through the plan, dismissal could lead to repossession.
Bankruptcy protection only works while the case is active.
Can My Chapter 13 Payment Be Lowered?
Sometimes, yes.
If your income has decreased or your expenses increased, you may be able to request a plan modification.
Examples include:
- job loss
- reduced hours
- medical issues
- increased rent or childcare costs
- unexpected car repairs
- divorce or separation
Your attorney may be able to file a motion to modify the plan to reduce your payment.
Can I Pause Payments Temporarily?
In some cases, yes.
Depending on the court and trustee, your attorney may be able to request:
- a short suspension of payments
- a payment deferral
- a temporary plan adjustment
This is more common when there is a temporary hardship.
What If I Can’t Afford Chapter 13 At All?
If Chapter 13 is no longer realistic, you may have options such as:
✅ Converting to Chapter 7
If you qualify, conversion may allow you to discharge debt without a long repayment plan.
✅ Voluntary Dismissal
Some people choose to dismiss, but this can be risky because creditors can resume collection immediately.
✅ Hardship Discharge (Rare)
In limited situations, a hardship discharge may be available if you cannot continue the plan due to circumstances beyond your control.
What Should I Do If I Know I’m Going to Miss a Payment?
The best step is:
Contact your attorney immediately.
Waiting too long can lead to dismissal before you have a chance to fix the issue.
In many cases, early action can prevent serious consequences.
The Bottom Line
If you can’t make your Chapter 13 payments:
⚠️ one missed payment may be fixable
⚠️ multiple missed payments can lead to dismissal
❗ dismissal removes bankruptcy protection
✅ modification or conversion may be possible
✅ the sooner you act, the more options you have
Final Thought
Chapter 13 is designed to help people recover financially — but it
