When a debtor has fallen behind on secured debt payments, the debtor is automatically required to file Chapter 13.

Question

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Falling behind on secured debt payments does not automatically require a debtor to file for Chapter 13 bankruptcy. Debtors have various options, including negotiating with creditors, restructuring the debt, or considering other forms of bankruptcy like Chapter 7, depending on their situation.

When a Debtor Has Fallen Behind on Secured Debt Payments