How to Adjust a Chapter 13 Plan
- 1). Compile evidence of your change in circumstances. You may submit a recent tax return, pay stubs from a new job or a document from your local Department of Labor stating that you are currently unemployed.
- 2). Calculate how much you can afford to pay toward your repayment plan. You must repay secured creditors in full, but you can reduce the amount of your monthly payments to unsecured creditors such as credit card companies and collection agencies.
- 3). Draft a new repayment plan based on your change in income. Remember that you are required to allocate all of your disposable income to repaying your debts.
- 4). Visit your county clerk's office and request a Motion to Modify Chapter 13 form. This form is the document that you will submit to the bankruptcy trustee that officially requests the change.
- 5). Fill out the Motion to Modify Chapter 13 form with the amounts you are able to pay. Make copies of your evidence that proves you have suffered a change in your financial circumstances. Attach the evidence to your motion and file it with the court.
- 6). Wait for the court to reach a decision regarding your request. This should occur within 30 days. During this time period you must continue making your originally agreed upon payments to the bankruptcy trustee. Once your request for modification has been approved, you may begin making payments according to the new repayment plan.
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