Chapter 13 bankruptcy: what is it?
Can I change the plan after I have
filed?

Chapter 13 of the United States Bankruptcy Code allows the debtor to use his or her income to pay some or all debts that are owed to creditors. It includes a payment plan that lasts for three to five years which lays out how much and how you will pay off your debts. The specific length of the bankruptcy will depend on the size of the filer's income and debts. Before you can go forward, you will need to have the court approve your payment plan.

There may come a time when you wish to modify your Chapter 13 bankruptcy plan before your payment period is finished. If you can no longer afford your payments, you can ask the court to modify your bankruptcy payment plan. If accepted, your payments will be more affordable based on your lifestyle. Common reasons for a modification to be pursued include:

• Job loss
• Illness
• Unexpected emergency

Another situation that may occur is seeking to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy. You may want to switch chapters for the following reasons

• Change in financial circumstances
• You decide not to keep a specific piece of property

In some cases, the bankruptcy court will even force you to make this conversion. Reasons the court may force you to convert are:

• Failure to file Chapter 13 on time
• Failure to make Chapter 13 payments
• Unreasonable delay that causes harm to creditors

There are not many restrictions to converting bankruptcy chapters beyond qualifying for Chapter 7 bankruptcy relief. For more information and assistance with any aspect of Chapter 13 bankruptcy, call us today at The Nesbitt Law Firm!