QUESTION
What can we do if we would like to have our Chapter 13 payment reduced?
Asked on Mar 18th, 2014 on Bankruptcy - California
More details to this question:
My husband and I filed a chapter 13 last year. At the time my husband was working a massive amount of overtime because I was not working. The result was that we had to pay 600 per month to a trustee. After I found a job my husband’s overtime was stopped and he may only work a regular 40 hours per week. With my current salary and my husband regular hours we are in the negative of about 600 per month. We went to our Attorney to ask is we could have our payment reduced and was told that we could not and if we were to try that our payments would increase. Can we seek another Attorney?
7 ANSWERS
You are welcome to seek a second opinion, but typically one an order is signed confirming a Plan, the amounts that need to be paid to creditors have been determined & are written in stone. While you can ask for a temporary reduction in plan payments due to a loss of income, you often have to make up the missing amounts down the road. And submitting and having another plan confirmed is not simply a matter of snapping your fingers and making it happen. The amended plan needs to be noticed to all of your creditors and a court appearance to confirm the plan is required. If you are willing to pay your attorney for this additional work, great, but don't expect your attorney to do this additional work for the base fee provided. The attorney's work is basically completed once an original plan is confirmed.
Answered on Mar 19th, 2014 at 2:52 PM
Debt Relief Attorney serving Anaheim, CA
Partner at
Marlin Branstetter Attorney at Law
You can always seek the advice of another attorney. If you income has been reduced you should be able to make a motion to the court for a modification of you plan payments. If you are now negative you may want to convert to a chapter 7 depending upon your overall situation.
Answered on Mar 19th, 2014 at 2:43 PM
Yes, by all means, contact another attorney. You need to do a Post Confirmation Modification. You will need to submit new schedules I (income) & J (expenses), as well as your most recent paystubs with year-to-date information. Make sure you contact an attorney who has lots of experience (for example, I have done hundreds if not thousands of PCM's). Good luck!
Answered on Mar 19th, 2014 at 10:49 AM
Bankruptcy Attorney serving Seattle, WA
at
The Law Office of Marc S. Stern
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You can always change counsel.
Answered on Mar 19th, 2014 at 3:40 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
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If your joint income has been reduced, then you should be able to have your monthly payment reduced. Even if you fail to have the payment reduced, the court wouldn't increase your payments. I believe you should consult another attorney.
Answered on Mar 19th, 2014 at 3:40 AM
If your circumstances change you can ask the Trustee to modify the plan. Obviously, there is no guarantee of success and you will have to pay for the time involved, but if your disposable income has changed you can attempt it.
Answered on Mar 19th, 2014 at 3:39 AM
If there are reasons you can file a Motion to modify the Plan.
Answered on Mar 19th, 2014 at 3:39 AM