Failing To Abide By The Terms In A Bankruptcy Plan
What are the consequences of failing to abide by the terms of a bankruptcy plan?
Failing to abide by the terms of a bankruptcy plan can have serious consequences. If you fail to timely file all required paperwork, you may be held in contempt of court and jailed for a period ranging from 15 days to six months, depending on the circumstances. In addition, if you fail to make all payments as scheduled during your bankruptcy, the court could revoke your discharge, which would mean your debts would again be enforceable against you.
You and your lawyer will work together to create a payment plan appropriate for your situation. This plan is a contract between you, the court, and your creditors.
If you don't stick to the terms of the plan, there are consequences. This can lead to the following:
- Credit score hits and more interest on your remaining debt;
- Loss of exemptions and assets;
- Inability to file for bankruptcy again for eight years (if you're an individual) or ten years (if you're a business);
Perhaps most importantly, if you fail to abide by the terms of your plan, future financial aid from the government might be drastically reduced or eliminated.
If you fail to abide by the terms of a bankruptcy plan (whether it's your own or a joint filing), you violate the law and could face the consequences. Depending on the violation and specific circumstances, these consequences can include having your case dismissed, losing your discharge, and being forced to repay creditors with interest.
Bankruptcy Attorney Free Consultation
If you are looking for a legal advice about bankruptcy plan or in need an attorney, call this law firm for free consultation. We have the Best Attorneys in Utah.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
https://www.ascentlawfirm.comDisclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
