Q: A chapter 13 debtor, of whom I am a creditor, has now filed a motion to suspend plan payments. What does this mean?
Is this the same as canceling the bankruptcy? If the motion is granted, does that mean creditors will not be paid? Do I need to hire an attorney and attend the upcoming hearing regarding this motion in order to protect my interests?
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A:
When a Chapter 13 debtor files a motion to suspend plan payments, it means they are requesting a temporary halt to their bankruptcy payment plan, usually due to a financial hardship. This is not the same as canceling the bankruptcy. If the motion is granted, the debtor may temporarily stop making payments, but it does not necessarily mean creditors will not be paid at all. Payments could resume once the suspension period ends.
As a creditor, it's important to stay informed about changes in the debtor's payment plan. The suspension of payments could impact when and how much you receive. Attending the hearing can give you a chance to express any concerns and understand the debtor's situation better.
You might consider consulting with an attorney to ensure your interests are protected, but it is not mandatory. Being present at the hearing allows you to stay involved in the process and make informed decisions about your next steps.
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