What happens if you get divorced during a Chapter 13?
If you are involved in a chapter 13 bankruptcy and decide to file for divorce during the repayment period, you can choose to cancel or restructure the bankruptcy plan. By canceling, you agree to stop the agreed upon payment plan; however, all debt you and your spouse have assumed will still be your responsibility.
What happens if I voluntarily dismiss my Chapter 13?
That's because most likely you have debts which you would continue to owe. Chapter 13 does not result in a “discharge”—legal write-off—of your debts until its successful completion. So if you dismiss before then you will continue to owe those debts.
Can I get my Chapter 13 payments lowered?
If your income decreases during your Chapter 13 bankruptcy, you might be able to reduce your plan payment. Answer: If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can to ask the court to modify your plan and reduce your payment amount.
Will Filing Chapter 13 affect my credit?
A Chapter 13 bankruptcy can remain on your credit report for up to 10 years. Although a Chapter 13 bankruptcy stays on your record for years, missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit, and may be more complicated to explain to a future lender than bankruptcy.
Can one spouse file Chapter 13 and not the other?
You can file for a bankruptcy in California either jointly with your spouse or individually. California is a community property state, and even if you file bankruptcy separately without your spouse, your community property is protected. Creditors cannot come after any part of it as long as you are married.
What happens if I get married while in Chapter 13?
In a Chapter 13 Bankruptcy, you are required to pay your disposable income into your bankruptcy plan in order to pay back your creditors. For those who get married after their case is filed, their household income may increase if their new spouse is employed.
Can you get out of Chapter 13 bankruptcy early?
In most Chapter 13 bankruptcy cases, you cannot finish your Chapter 13 plan early unless you pay creditors in full. In fact, it's more likely that your monthly payment will increase because your creditors are entitled to all of your discretionary income for the duration of your three- to five-year repayment period.