Q: I have a chapter 13 bankruptcy question.
My one secure debt is from me stupidly pawning my car title. I owe $5500. I was told I’d pay $136 + $620 a month for TM with TM being paid off in 8 months. But my petition shows I will pay $756 for 36 months. Will my payment drop to the $136 a month once TitleMax is paid off?
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A: In a Chapter 13 bankruptcy plan, your payment can indeed change over time. If your plan is structured so that you're paying off the TitleMax loan within 8 months, once that debt is fully paid, your plan payment may be adjusted. However, this depends on the other debts included in your plan and the terms set by the bankruptcy court. It's critical to review the terms of your confirmed plan and consult with your bankruptcy attorney to understand the specifics of your payment schedule. They can also assist you if a modification to the plan is necessary to reflect changes in your financial situation or to address concerns with the way debts are being treated under your current plan.
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