What Information Will I Need to Modify My Chapter 13 Repayment Plan?
Chapter 13 bankruptcy plans last for a long time — three to five years. When a debtor initially creates the repayment plan, it is based on their financial circumstances at that time, which are usually financial circumstances they are anticipating will continue through the length of the bankruptcy case. However, in three to five years, circumstances can change for a wide range of reasons. A debtor might lose a job due to layoffs and deal with unemployment before finding a lower paying job. Or, a debtor might be diagnosed with a serious illness that prevents them from working for an extended period of time. In such circumstances and more, the debtor may not be able to afford the regular payments associated with their Chapter 13 case. And in these types of situations, a debtor often has good reason to want to revise the terms of their repayment plan.
If you find yourself in a situation like this, what steps will you need to take to modify your Chapter 13 plan? And what type of information will you need to provide? Consider the following information from a West Palm Beach bankruptcy lawyer at Kelley, Kaplan & Eller.
Showing a Change in Circumstances
The key to modifying your Chapter 13 plan will be a change in circumstances. The complexity of modifying the plan will depend in part on whether your change in circumstances occurred prior to or after confirmation of your Chapter 13 plan.
To be clear, the type of documentation and information that will go into modifying your Chapter 13 plan will depend on whether you are seeking a modification before the court has confirmed your plan or after confirmation.
Information You Will Need to Provide to Modify Your Chapter 13 Plan
If your circumstances changed quickly after you began making Chapter 13 plan payments and your plan has not yet been confirmed, you can often work with your lawyer to provide the court with more information about your change in circumstances and a modified plan.
If your plan was confirmed — whether that occurred within the last month or several years ago — you will need to draft a motion to modify your Chapter 13 plan. You will then need to gather evidence that shows how your circumstances have changed. The evidence you will need to provide to the trustee and the court will depend on the nature of your change in circumstances. You may need to provide pay stubs, medical records, W-2s or 1099s, and related materials.
Contact Our West Palm Beach Bankruptcy Lawyers Today
If you want to modify your Chapter 13 repayment plan, it is essential to discuss the process with a lawyer who can assist you. You will need to provide information to the court that shows a change in circumstances has necessitated a plan modification, and it will be important to gather appropriate evidence that will convince the court that a modification must happen. One of the experienced West Palm Beach bankruptcy attorneys at Kelley, Kaplan & Eller can assist you with this process. Contact our firm today to ask any questions you have about modifying a reorganization bankruptcy plan and to begin working on your request for a modification.
Source:
law.cornell.edu/uscode/text/11
