When you file for Chapter 13 bankruptcy, you agree to enter into a repayment plan with your creditors. This helps you repay what you owe and makes it possible for you to keep your home and other property. This repayment plan should be something you can afford. But just because you’re able to afford the plan when it’s created doesn’t mean your circumstances can’t change. Your South Carolina bankruptcy attorney may be able to help you modify your repayment plan to help you continue making payments.
It’s Possible to Modify Your Repayment Plan
First and foremost, it’s important to note that you can modify your repayment plan if your circumstances change. There are two types of modifications you can make, and it depends on when you’re requesting your modification.
- Modification before confirmation: If your bankruptcy case hasn’t been confirmed, you may be able to request a modification of your repayment plan before the court confirms your case. If you’re able to request modification before confirmation, you may be able to modify your repayment plan before making your first payment.
- Modification after confirmation: After the court confirms your repayment plan, you can request a modification after the fact. This involves working with the trustee and providing proof of why you need a lower payment.Â
Your attorney will be able to represent your interests and help you decide if requesting modification is the right choice.
How to Modify Your Chapter 13 Repayment Plan
To request modification of your Chapter 13 repayment plan, you’ll need to file a formal request with the court. If you’re modifying your plan before confirmation, you’ll need to provide the bankruptcy trustee and your creditors with a copy of your modified plan. They’ll review that plan and either approve or reject the plan.
If you’re modifying your plan after confirmation, the process is a bit more complex. You’ll need to file a motion to modify with the bankruptcy court requesting a modification of your repayment plan and secure a date for the hearing. As part of your request, you’ll need to provide the court with information about why you’re requesting the modification. You’ll also need to provide proof or evidence as to why you need a modified repayment plan. Once you submit everything, the trustee and your creditors will review your documents and render a decision. If they agree with your request, the court will typically approve the amended plan. But if they don’t agree, they can challenge the plan.
Why You Might Modify Your Plan
There are several reasons why you may choose to modify your plan. Here are some of the most common:
- You lost your job.
- Your income has been reduced.
- You had a child.
- You’ve experienced an unexpected emergency like medical bills.
- You got married.
- You got divorced.
If you’ve experienced any of these situations, you’ll want to speak with your South Carolina bankruptcy attorney. They’ll help you throughout the entire process and can reduce the risk of errors on your paperwork delaying the modification.
When Is Modifying Your Plan Not Beneficial
Modifying repayment plans can be a good choice, but it’s not the perfect option for everyone. If you’re modifying your plan just to free up money each month, but haven’t experienced a qualifying event, your request will likely be contested. And if you want to have your debts forgiven, modifying your plan won’t be a good choice.
Consult With Your South Carolina Bankruptcy Lawyer
Chapter 13 bankruptcy repayment plans can help you repay what you owe over time. If your circumstances change, modifying the plan can help you keep things affordable. But requesting a modification can take work. If you’re concerned about your repayment plan, speak with your South Carolina bankruptcy lawyer at Lam Law Firm. Contact us today to schedule an appointment.
