When you file a Chapter 13 bankruptcy, you will be required to file a repayment plan. For more information on Chapter 13 plans, please read my blog titled“Chapter 13….What is the Plan?” The plan sets forth how a debtor intends to repay his creditors over a term of 3 – 5 years, while also keeping as many assets as possible. But what happens if your circumstances change during the course of your bankruptcy case? The Bankruptcy Code provides two basic options:
Amending your plan. A debtor can request permission from the court to amend the Chapter 13 plan. The burden of proof is on the debtor to demonstrate that a modification of the plan is necessary. Creditors have the opportunity to challenge the modification, so you will need to be prepared to handle any objections. In other words, it is necessary that you have documentation that demonstrates a change in your finances and that modifying the plan is necessary. Some of the most common ways to modify a Chapter 13 plan are to alter the amount of the monthly payment or extend the term of the plan.
Conversion of your case. A debtor who is struggling in a Chapter 13 case can convert his case to a Chapter 7. For more details regarding conversion of a case, please read my blog titled “Converting a Chapter 13 to a Chapter 7 Case.” In order to convert a case, the debtor must be eligible to file a Chapter 7, which means that he must be able to pass the “means test.” For more information on the means test, please read my blog titled “Bankruptcy and the Means Test.”
Contact Dan Dodds if you are interested in filing a bankruptcy case or you need assistance with a struggling Chapter 13 case.
If you live in the area of Surprise, Arizona, contact The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staff know how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices.
{ 0 comments }
