To lower monthly payments over the long term, you have to ask the bankruptcy court to modify your plan. Cause for modifying your plan to lower your monthly payments includes: having to take a lower-paying job. for self-employed debtors, losing key customers or incurring unanticipated business expenses.
Chapter 13 Plan Modification: Timing Events such as job loss, illness, or an emergency can affect your ability to afford your bankruptcy plan payments. If this happens to you, then you might be able to ask the court to modify your Chapter 13 plan payments to an amount you can afford.
The answer to this question is "yes," your Chapter 13 Plan payment can be increased after the Plan is confirmed. When you file a Chapter 13 bankruptcy case, your wages and all other income are under the jurisdiction of the United States Bankruptcy Court.
Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal ...
Every case has different requirements on repayment to creditors. If your income is too high, you may not realize a significant reduction in your plan payment by “changing your plans.” You may be required to pay back up to 100% of your debt in your Chapter 13 case depending on your debt and income levels.
Skipping a Chapter 13 plan payment can negatively impact your Chapter 13 case. If you miss a payment under the plan, the court can decide to dismiss your case or change your bankruptcy case to Chapter 7. Under a Chapter 7 bankruptcy, the court can liquidate your nonexempt assets to pay your outstanding debts.
Plan modification is characterized as a process of removing inconsistencies in the validation structure of a plan when it is being reused in a new (changed) planning situation.
A hardship discharge is a discharge the court grants you before you complete all of the required payments under your Chapter 13 repayment plan.
When you complete your Chapter 13 repayment plan, you'll receive a discharge order that will wipe out the remaining balance of qualifying debt. In fact, a Chapter 13 bankruptcy discharge is even broader than a Chapter 7 discharge because it wipes out certain debts that aren't nondischargeable in Chapter 7 bankruptcy.
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
In most Chapter 7 bankruptcy cases, nothing happens to the filer's bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won't affect it.
Unsecured debts wiped out by Chapter 7 bankruptcy include credit card debt, medical bills, and gasoline card debt. However, you can't wipe out all unsecured debt.