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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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What can I say to the courts to lower my bankruptcy payments

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What can I say to the courts to lower my bankruptcy payments monthly. On my 62nd birthday my retirement check which I depended on to pay my medical (200.00), court(325.00) and buy medical insurance (400.00)was cut from $1200 monthly to $200 monthly plus you skip a months pay. Now I don't have the money to pay until Social Security picks me up. I am afraid of being dismissed. I won't receive any money until late April as I understand.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

WALLSTREETESQ :

This is a serious matter, since your monthly income has decreased significantly, you would have to amend your current chapter 13 plan, and perhaps even have to convert it to a chapter 7 if you no longer can make payments,

WALLSTREETESQ :

You may even need to file a motion if several years have gone by since you fiiled your bankruptcy to reflect the sudden change.

WALLSTREETESQ :

Under the bankruptcy code, you may be required to contribute your projected
disposable income toward plan payments for the first 36 months of the plan. (I
say "may" because the code [11 U.S.C. §
1325(b)(1)
] only requires you to contribute your full disposable income to
plan payments if the trustee or a creditor require it. Our experience is that
the trustee always requires it, at least at the start of the plan.)

WALLSTREETESQ :

So what you would need to do is advise the trustee that your disposable income has decreased,

WALLSTREETESQ :

and that under the code, they have to reduce the payment to reflect your decrease/

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