Chicago, IL asked in Bankruptcy for Missouri

Q: Can a chapter 13 plan be extended longer than 5 years?

I have been paying for 58 months on a ch. 13 plan. My lawyer just emailed and said I owe $7500 more dollars. I pay $750 a month. They asked if I wanted to pay a lump sum or try to extend my payments for 6 months Nothing has changed since I filed and I made every payment. Is this common?

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Bankruptcy Lawyer
  • Boyertown, PA

A: I looked into this for a client last fall, and the cases seem pretty clearly to say that the five-year period for a Ch. 13 confirmed plan cannot be extended beyond five years.

It may be that some creditor(s) have filed proofs of claim enlarging the amount you must pay to be current on, e.g., mortgages or auto or other secured loans.

The Ch. 13 trustee keeps an online accounting on your case and plan, and you can check that to see where you stand.

Of course, you could/should always ask your bankruptcy lawyer for an explanation.

Timothy Denison agrees with this answer

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