What would she need to do to get the payments reduced to her new lower income?

Adjusting a Chapter 13 Bankruptcy Repayment Plan

by Dollar Stretcher Contributors

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Adjusting a Bankruptcy Repayment Plan

I am in a Chapter 13 bankruptcy that was approved last year, a month before my salary dropped by $600/month net. It was so much work (and stress) to prepare and justify the numbers for the original budget approved by the Court that I hesitate to initiate a "change to the plan." At the same time, it's a challenge with my salary decrease, and my payment is increasing by another $137 this month. Can any TDS readers give me insight into what is involved in renegotiating a Chapter 13 payment plan? Does anyone have any success (or horror) stories or tips?

Worth the Phone Call

I was a legal assistant to a bankruptcy attorney for several years, and I suggest contacting the attorney who prepared the initial filing to request a payment modification. The fees for the attorney can be incorporated into the payment to the Court, and there may be ways to get the plan changed to help fit your new income amount. It would definitely be worth the phone call!

Talk to Your Attorney Immediately

Talk to your bankruptcy attorney immediately. He still works for you, as you are paying him through your plan. Your attorney should submit to the court an amendment to your plan, which should not involve going back to court. It is better to let your Trustee know that you cannot pay rather than not pay at all, as you will have to go back to court and possibly re-file and go through all that mess again.

Reviewed August 2017

Take the Next Step:

  • It looks as though the consensus is unanimous. Contact your bankruptcy attorney immediately.
  • Get more answeres to your bankruptcy questions by visiting the Dollar Stretcher Library.
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