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What Happens if My Expenses or Income Change During My Chapter 13 Bankruptcy?

Posted on Mar 25, 2011 in Bankruptcy, Bankruptcy Information, Chapter 13

             Lakelaw is familiar with Chapter 13 Bankruptcy plans.  During the three to five year plan, your finances can change, for the better – and for the worse.  If anything big happens – a job loss, a big raise, the birth of a new child, emergency expenses – the most important thing you can do is give your attorney a call immediately.If we know about changes set to happen, we can contact the Chapter 13 Trustee and the  Bankruptcy Court and explain the situation.  We can ask for an increase or decrease in plan payments, a temporary (one month) suspension of the payments, or, in extreme situations, we can convert your case to a Chapter 7 or try to get an early discharge due to a hardship.

            Suppose, for instance, your governor and legislature decide that as a state employee, you should have to contribute more to your insurance and retirement plans.  Your net income on every paycheck will go down.  Before missing your mortgage payment or Chapter 13 plan payment, call your attorney and see what we can do to show your changes on your budget schedules (Schedules I and J) and propose a different plan. 

            Chapter 13 can be complicated and stressful, but it does not have to be torture or a debtor’s prison.  You are paying for the services of an attorney for the full life of the plan, and you should make use of that attorney before it becomes too late to save your plan.  If you are in Chapter 13 and you have experienced a major change in income or expenses, call us at 866-LAKELAW or 262-694-7300 in Wisconsin.


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