Chapter 13: 3 Situations That Might Make You Consider Changing Your Bankruptcy Plan

Declaring bankruptcy under Chapter 13 comes with several benefits. This includes creating a repayment plan that might make it easier to repay what you owe. In addition, you have a right to amend the plan when you want to make your payment easier and exit bankruptcy faster. However, it is advisable to work with an attorney when making changes to your plan. This will enable you to get advice on the amendments that will work best for your situation. Below are some situations that may make you consider changing your bankruptcy plan and how an attorney can help.

You want Your Application to Go Through

Bankruptcy courts give applicants the right to create repayment plans depending on their income. After that, judges examine the plans before approving or disapproving them. Unfortunately, in some instances, the court disapproves plans that don't seem realistic or manageable. Luckily, disapproval is not the end of the process. When this happens, hire a bankruptcy attorney to draft another plan. They will start by analyzing why the court disapproved of your first plan. Ultimately, this will let them know how to create an acceptable document.

Your Creditor Has Requested You to Make Amendments

Your creditors have a right to make recommendations on the terms of your repayment plan. Therefore, if some of them make recommendations that warrant amendments, you must make the changes to prevent disagreements that might jeopardize your application. For instance, some creditors might complain that you did not include them in your plan or that you're not treating them fairly. So, if they raise these concerns, your attorney will make the necessary amendments to ensure that every creditor is satisfied.

Unexpected Issues Have Cropped Up

It may also be necessary to amend your repayment plan when unexpected issues crop up during bankruptcy, including losing your job or car. When such issues arise, contact a legal advisor immediately to enable you to determine the best course of action. Note that their first step will be to notify the court of the changes and your inability to make monthly payments as agreed. Then, if the situation is temporary, they will request the court to allow you not to make the payment until you start earning. However, if you expect the situation to continue for some time, your lawyer will work with the trustee to amend your plan and give you more time to pay off your debts.

You should take advantage of the flexibility offered by Chapter 13 to make any necessary amendments to your repayment plan. This way, you will have an easier time repaying your debts and recovering from bankruptcy. In addition, a Chapter 13 bankruptcy attorney can assist you in modifying your plan when needed to make it easier to regain your financial freedom. For more information, contact a Chapter 13 bankruptcy lawyer near you.