Can I Modify My Chapter 13 Repayment Plan After It Has Been Approved?
In South Carolina, you can modify your approved Chapter 13 repayment plan in appropriate circumstances. An experienced Florence, S.C. bankruptcy lawyer from Reed Law Firm, P.A. might help you lower your monthly payment, decrease your repayment term, or otherwise change the nature of your allocations. Discuss the best option in your case with our dedicated Chapter 13 legal professionals today by calling (843) 679-0077 or contacting us online.
Filing to Modify a Confirmed Chapter 13 Plan
To modify a confirmed wage earner’s plan, your attorney must file a petition under 11 U.S.C. § 1329 based on substantial changed circumstances. While debtors often request lower monthly payments due to income loss, you might also ask the court to increase certain payments or change the plan term if your situation improves. This might allow you to complete your bankruptcy plan early and begin rebuilding credit.
Submitting Supporting Evidence of Changed Circumstances
In most cases, debtors need to lower their monthly payments after experiencing an intervening life event such as job loss, medical expenses, or the birth of a new child. You may request the court reduce your monthly bankruptcy payments – often by increasing the repayment term – but must submit evidence to support the request, including:
- Termination paperwork
- Pay stubs/tax documents
- Birth certificates and child support orders
- Medical bills
- Health insurance premiums
- Home damage reports
- Mortgage rate changes
- Police and accident reports
Working with a Chapter 13 modification lawyer to file the petition and supporting evidence is the best way to ensure approval.
Factors Impacting Chapter 13 Repayment Modifications
It’s not uncommon for debtors, especially those with private businesses, to file multiple petitions to modify their plans during the repayment term. Though South Carolina bankruptcy judges will generally modify repayment plans based on unexpected financial events, modification is never guaranteed. The following factors may impact your ability to modify a Chapter 13 repayment plan in Florence.
Creditor Challenges
Creditors may challenge your right to modify a plan, especially if you’re already making minimum payments over the maximum five-year period. Any modification that significantly impacts a creditor’s rights, especially if you’ve fallen behind on payments, might result in a modification denial.
Foreseeable or Preventable Events
Courts may not grant a modification if the significant event was preventable or foreseeable. For example, you failed to account for child support arrears or other expenses in the original petition. The judge might also deny the modification if your negligent or intentional actions resulted in job loss or increased medical expenses. If you were fired or contributed to any income reduction, always discuss your petition with an attorney before filing for modification.
Lack of Stable Wages
Chapter 13 bankruptcy has numerous benefits, including the ability of many petitioners to keep their homes and vehicles. If you cannot show the court that you’re still a wage earner, you may be forced to convert your case to Chapter 7 liquidation. A Florence bankruptcy lawyer might help you understand whether filing to modify a confirmed Chapter 13 plan is in your best interest and even request hardship discharge.
Modify an Approved Chapter 13 Bankruptcy Plan with the Reed Law Firm, P.A.
Do not file a petition to modify your wage earner’s plan payments without speaking with our dedicated Florence, S.C. Chapter 13 bankruptcy lawyers. The court may force you to convert the plan to Chapter 7 liquidation, or creditors may challenge your right to modify payments. Schedule a confidential bankruptcy payment modification consultation with our South Carolina attorneys today by calling (843) 679-0077 or contacting us online.
