What Happens If You Miss Payments in a Chapter 13 Repayment Plan?
April 28, 2025
Filing for Chapter 13 bankruptcy gives us a way to catch up on debts over time while protecting assets like our home or car. It’s often the right path when we're dealing with foreclosure, tax debt, or other financial stress.
But once that repayment plan is in motion, sticking to the payment schedule is critical. Missing payments can create new problems and, in some cases, put the entire bankruptcy case at risk.
At Deborah Brooks & Associates, P.C., based in Oklahoma City, Oklahoma, and Lawton, Oklahoma, I’ve worked with individuals and families who face this exact issue. Life happens. Job loss, medical emergencies, and unexpected expenses can disrupt the best-laid plans.
So what happens if we miss payments in a Chapter 13 repayment plan? Let’s explore the legal consequences, potential solutions, and how a bankruptcy attorney can help us stay on track or get back on course when things go sideways.
Making Sense of the Chapter 13 Repayment Plan
A Chapter 13 repayment plan is a legal agreement that restructures our debts into manageable monthly payments, typically over three to five years. It's approved by the bankruptcy court and tailored to our income, expenses, and types of debt.
Missing a payment doesn’t automatically mean disaster, but it does raise red flags. The trustee managing the case may file a motion to dismiss, creditors could resume collection efforts, and the protection of the bankruptcy court could start to weaken.
Common reasons for missed payments include:
Job loss or reduced income
Medical emergencies
Unexpected family expenses
Cost of living increases
Poor communication with the trustee
These situations can creep up without warning. That’s why we always advise people to reach out the moment they realize a payment might be late.
Immediate Consequences of a Missed Payment
The first missed payment typically draws the trustee’s attention. Chapter 13 trustees review every case closely to make sure payments are on time and in the correct amount. If we miss just one, the trustee might send a letter requesting an explanation or asking us to catch up immediately.
If the missed payment isn't addressed, the trustee can file a motion to dismiss the case. That means all of our debt protections—including the automatic stay that halts collections, lawsuits, and foreclosure—could vanish. Once dismissed, we’re back where we started, and creditors may come calling again.
Early warning signs that trouble is ahead include:
Receiving a letter from the trustee
Getting a court notice of a motion to dismiss
Falling behind on other bills
Losing track of payment dates
When we notice any of these signs, it's time to take action—before the problem grows into a full-blown legal issue.
What a Trustee’s Motion to Dismiss Means
A motion to dismiss isn’t an automatic end to our bankruptcy case, but it’s a wake-up call. When the trustee files this motion, it signals that the court may close the case unless something changes. At this point, we have a few options, but we need to act fast.
Our options in response to a motion to dismiss include:
Catch up on missed payments in a lump sum
Propose a modified repayment plan
Request a temporary suspension of payments
Present evidence of hardship or good faith effort
Sometimes, we’re able to negotiate directly with the trustee or present our case to the judge. With help from an experienced bankruptcy attorney, we can often work out a solution that keeps the case alive and avoids dismissal.
Working With the Court to Modify the Plan
If catching up on missed payments isn't possible right away, modifying the repayment plan may be the next best step. Modifications are common when income drops or expenses go up. We just need to show the court why the change is necessary and how we’ll meet the new terms going forward.
A bankruptcy attorney plays a big role here—drafting the modified plan, submitting the right forms, and arguing our case before the court if needed. Without proper legal guidance, modifications can be denied or delayed.
Key situations that justify modifying a Chapter 13 plan include:
Permanent or long-term job loss
New or increased medical costs
Divorce or change in household size
Major unexpected expenses
We’ve helped many people make these adjustments and keep their bankruptcy cases on track. It takes careful documentation and good communication with the trustee, but it’s often the smartest route.
Requesting a Temporary Suspension of Payments
Sometimes, we just need a short break. If the hardship is temporary—like recovering from surgery, switching jobs, or dealing with a family emergency—we can request a payment suspension. Courts may grant this relief for a few months, giving us time to recover financially.
Circumstances where suspension might be allowed include:
Medical leave from work
Natural disasters or home damage
Short-term disability
Temporary caregiving responsibilities
The suspension request must show both the need and a path forward. Courts want to know we’re not giving up but just need a little time to get things under control. A bankruptcy attorney can help file the request properly and respond to any objections from the trustee or creditors.
What Happens if the Case Is Dismissed?
If all else fails and the court dismisses the Chapter 13 case, we lose the protections that came with it. The automatic stay ends, and creditors can restart collection efforts, foreclosures, repossessions, or wage garnishments. Any progress made during the bankruptcy—such as catching up on mortgage arrears—may be lost.
The aftermath of a dismissed Chapter 13 case might entail:
Foreclosure proceedings can resume
Creditors may sue for unpaid balances
Vehicle repossession could occur
Interest and penalties on debt begin again
Credit report shows the bankruptcy dismissal
Although dismissal is serious, it's not always the end of the road. We can sometimes refile the case or convert it to a Chapter 7, depending on our circumstances.
Refiling After a Dismissal
In some cases, we may qualify to refile Chapter 13, starting the process over with a new plan. This usually requires showing the court that the new case won’t fail for the same reasons as the first. There are limits to how often we can refile, and in some cases, the automatic stay won't go into effect right away unless the court approves it.
Considerations before refiling a Chapter 13 case include:
Whether we’ve fixed the issue that caused the dismissal
If our income or expenses have changed
How much time has passed since the original case
Whether creditors have taken new action
Refiling can be a powerful tool, but it has to be done with a clear strategy. A bankruptcy attorney can evaluate whether refiling makes sense and how to present a strong case to the court.
Converting to a Chapter 7
If our financial situation has changed significantly, converting the case to a Chapter 7 may be an option. Chapter 7 liquidates non-exempt assets to pay creditors and can discharge most unsecured debts. It's a different type of bankruptcy with different eligibility requirements, so it’s not right for everyone.
A bankruptcy attorney can help us weigh the pros and cons and determine if Chapter 7 offers better relief. In some cases, it’s a better fit—especially when income is too low to support a repayment plan.
Avoiding Missed Payments in the First Place
The best way to deal with missed payments is to prevent them whenever possible. Staying organized, budgeting wisely, and communicating with our attorney can go a long way in keeping our Chapter 13 case on track.
Tips to avoid missing Chapter 13 payments include:
Set up automatic bank drafts when allowed
Keep detailed records of income and expenses
Inform a bankruptcy attorney immediately about income changes
Use calendar reminders for payment due dates
Build a small emergency fund for unexpected costs
Life doesn’t always go according to plan, but preparation helps soften the blow when things go wrong.
How a Bankruptcy Attorney Can Help
At Deborah Brooks & Associates, we work closely with every client to keep their Chapter 13 plan moving forward. When problems pop up—and they do—we help evaluate options, communicate with the trustee, and protect our clients’ legal rights.
Whether we’re filing a modification, defending against dismissal, or advising on the next step after a missed payment, our goal is always the same: helping our clients regain control of their finances. Deborah Brooks brings years of experience to every case, and we’ve helped hundreds of families in Oklahoma overcome tough financial obstacles.
The benefits of working with a bankruptcy attorney include:
Timely legal advice tailored to your situation
Drafting and filing modifications or suspensions
Communicating with the trustee or court on your behalf
Evaluating options like refiling or converting cases
Providing long-term support through the process
Bankruptcy is more than just paperwork—it’s a process that affects every part of our lives. Having a strong legal partner makes a big difference.
Contact Deborah Brooks & Associates, P.C. Today
Missing a payment in a Chapter 13 repayment plan doesn’t have to spell the end of our financial recovery. With the right support and strategy, we can address the issue, adjust our plan, and keep moving forward.
At Deborah Brooks & Associates, P.C., I help individuals and families throughout Oklahoma City, Oklahoma, Lawton, Oklahoma, and across Western Oklahoma find practical solutions when life throws a curveball. Contact my firm today to get started.