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...