QUESTION
What happens to our Ch. 13 if we can't afford to make the payments anymore?
Asked on Mar 21st, 2014 on Bankruptcy - Illinois
More details to this question:
what will happen if we miss a payment or can only make partial payments? I heard that it's very difficult to have the Ch 13 modified to reduce the amount of the monthly payments.
1 ANSWER
3 Awards
It all depends on the contents of the chapter 13 plan. If the main purpose of the plan is to catch up on a delinquent mortgage, and it is a five year plan, then you are unlikely to obtain a modification that lowers your monthly payment. If your plan is mostly to pay other debt, then it may be possible to modify the plan and lower your monthly payment, however, it is usually required that you pay off at least 10% of your unsecured debt through the plan, but there are exceptions.
Answered on Mar 24th, 2014 at 9:22 PM