Q: My Chapter 13 payments which started 9 months ago have been raised from $500 to $3500.

A: The significant increase in your Chapter 13 payment plan from $500 to $3500 is a substantial change and warrants careful consideration of your options. First, it's important to understand why the payment was increased. This could be due to changes in your income, expenses, or adjustments to the debts being repaid under the plan.

Before deciding to withdraw from the Chapter 13 plan, you should consult with your bankruptcy attorney. They can provide insight into the reasons for the increase and advise on the feasibility of continuing with the plan. Your attorney can also explore alternatives, such as modifying the plan to make it more affordable based on your current financial situation.

Withdrawing from a Chapter 13 plan is a decision with significant consequences. It could lead to the resumption of collection activities by creditors and loss of the protections offered by the bankruptcy process. On the other hand, if the increased payments are unmanageable, continuing with the plan might not be sustainable.

If you're considering waiting for a possible dismissal by the judge, be aware that this could also have implications for your financial situation and the handling of your debts. A dismissed case often leaves you back where you started, with all your debts intact and subject to collection.

In summary, this is a complex situation that requires personalized legal advice. Your bankruptcy attorney can guide you through this decision, helping you to weigh the pros and cons based on your specific circumstances. Remember, making an informed decision is crucial to managing your financial future effectively.