chapter 13

Your budget for Chapter 13 depends on a number of different factors.  There is the standard "means test" analysis (which is not called a means test in Chapter 13) which uses income received in the 6 months prior to filing your case subtracting allowed IRS expense amounts for necessary living expenses, and then there's your current income and actual expenses.  Both factor into your plan payment amount in a Chapter 13. Depending on what debts you have and what needs to be paid in full through your plan (such as recent taxes, mortgage arrears, etc.) you always have the ability to seek to modify your plan payment in the future if your budget changes, for example due to circumstances such as you set forth in your question.  If your budget changes enough, you may even qualify at some point to convert your case to Chapter 7. These are all questions your attorney should be able and willing to answer for you.  If not, you should look for a different attorney.   See my article for assistance in finding a qualified bankruptcy attorney.  Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.