Can I Modify a Chapter 13 Bankruptcy Repayment Plan?

If you filed for Chapter 13 bankruptcy and are currently making payments according to the terms of your repayment plan, you should know that various issues can arise that might lead you to ask if it is possible to modify the terms of that repayment plan. For example, especially given the state of the economy during the coronavirus pandemic, you might have lost your job or had your hours reduced. Or, you might have suffered an illness or injury that has prevented you from working at full capacity or from working at all. Other problems can also come up during the typical three-to-five-year period of a Chapter 13 bankruptcy plan, such as an unexpected car or home repair that requires you to set aside a significant amount of your income.

If an unexpected event occurs, it may be possible to ask the court to modify your Chapter 13 bankruptcy plan under U.S. bankruptcy law. We will provide you with some of the basic information to know, but we want to encourage you to seek advice from a bankruptcy lawyer if you do need to modify your Chapter 13 repayment plan. This process is complicated, and you should have an advocate on your side.

File an Amended Bankruptcy Plan Before Confirmation

If you filed for Chapter 13 bankruptcy quite recently and your plan has not yet been confirmed—sometimes it can take more than a year for confirmation—it may be a bit more straightforward to modify your Chapter 13 repayment plan. If your case has not been confirmed, you can work with your bankruptcy attorney to file an amended repayment plan and to provide information about your change in circumstances. If the amended plan is appropriate, the court can then confirm that plan.

File an Amended Bankruptcy Plan After Confirmation

If your Chapter 13 bankruptcy repayment plan has already been confirmed by the court, you will need to ask the court to modify the existing plan if you have experienced a change in circumstances. In order to do this, you will need to file a motion to modify. It will be critical to have assistance from a bankruptcy attorney during this process. In your motion to modify your existing Chapter 13 repayment plan, you will need to provide information to the court about your change in circumstances, and you will need to provide proof of the change in circumstances. Depending upon the nature of your changed circumstances and your continued eligibility for Chapter 13 bankruptcy, the court may be able to modify your repayment plan for the remaining amount of time so that you remain eligible for a discharge at the end of the repayment plan terms.

Contact an Oak Park Bankruptcy Lawyer

For some debtors who have experienced a significant change in circumstances, it may be necessary to convert your Chapter 13 bankruptcy plan to a Chapter 7 plan. Whether you need assistance modifying your Chapter 13 repayment plan or converting to a Chapter 7 bankruptcy, one of our experienced Oak Park bankruptcy attorneys can assist you. Contact the Emerson Law Firm today for more information.


See Related Blog Posts:
What is a Hardship Discharge in Chapter 13 Bankruptcy?
Can I File for Bankruptcy if I Owe Money to a Loved One?

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