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Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am chapter 13 BK plan and my income has reduce 3.5 an hour.

This answer was rated:

I am chapter 13 BK plan and my income has reduce 3.5 an hour. Can the plan be changed from 100% pay to unsecured to less than 100% pay to unsecured?

WALLSTREETESQ :

how many months do you have left?

WALLSTREETESQ :

A Chapter 13 bankruptcy Plan can usually be modified if there is a significant and unanticipated change of circumstances, such as an unexpected reduction in income. If you have several months left in your chapter 13 plan, you can file a motion to amend your plan, and ask the trustee and Court to allow you to lower your plan and pay your creditors a smaller amount.


If you are proposing to lower your monthly payments, you will also have to submit a new budget (Schedules I & J). This amended budget must show that your current household income and expenses have decreased your disposable income to the amount you are proposing to pay in your modification.

WALLSTREETESQ :

if your monthly disposable income is lower,

WALLSTREETESQ :

the Judge will accept a lower plan

Customer:

Most of what I pay is house note and car and about 3500 left to pay on unsecured. By doing the schedules I & J, is this when they would consider reducing the amount of unsecured debt to pay of less than 100%?

WALLSTREETESQ :

yes,

WALLSTREETESQ :

since the house and car are secured creditors,

WALLSTREETESQ :

they would be paid 100% the unsecured debts, would be paid less,

Customer:

ok, thanks alot. Have you ever heard of attempting to reduce what you owe on a car by negotiating with the car loan people a lesser amount to owe?

Customer:

...while still under bankruptcy.

WALLSTREETESQ :

If the car has limited resale value, they may agree but it is rare.

Customer:

ok, thank you very much.

WALLSTREETESQ :

Good luck, and if you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback, thank you

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