Childersburg, AL asked in Bankruptcy for Alabama

Q: I am in bankruptcy and I make less, can I reduce the amout that I pay biweekly

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2 Lawyer Answers
Christopher Kern
Christopher Kern
Answered
  • Bankruptcy Lawyer
  • Mobile, AL
  • Licensed in Alabama

A: It sounds like you are in a Chapter 13 case in which you make monthly payments under a plan. Yes, a plan may be modified after it is confirmed to reduce the payments if the financial condition of the Debtor changes.

Kevin M Ryan
Kevin M Ryan
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Mobile, AL
  • Licensed in Alabama

A: You should first get together your last 6 months of pay stubs ( husband and wife if this is a joint case), and your most recent federal income tax return. If self-employed or a business owner, prepare a year to date income and expense report. Your attorney will need to review that information as well as your current household budget. Preparing accurate information for your lawyer as far as your current income and household expenses will put you in the best position to address any objections to your motion to modify the Chapter 13 Plan by the Chapter 13 Trustee, or (in rare instances) creditors. You should monitor this information throughout your case and let your attorney know if there are any material changes in your income, earnings and household expenses. Sometimes, a Debtor becomes eligible to convert the case to Chapter 7 and can thereby accelerate the issuance of a Discharge Order ( there are reasons in some cases to stay in Chapter 13, sometimes because certain debts can be discharged in Ch 13 and not in Ch 7; every case presents unique, different circumstances, so again, please discuss these issues with your attorney).

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