Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) If the debtor can no longer afford the full monthly payment, he can ask for a modification in the payment amount, or he can ask that the case be converted to a Chapter 7. If the debtor does neither of these, the Bankruptcy Trustee will dismiss the case - usually after one or two missed payments.
2) If the case is dismissed, and there is a mortgage involved - the debtor again becomes liable for the balance of the mortgage.
3) The Trustee will want to see the tax returns for each year the plan is in effect, and will increase the plan payment with an increase in income.
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