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Modifying a Repayment Plan Under Chapter 13

The Law Offices of David K. Blazek, P.C. Dec. 21, 2022

Chapter 13 bankruptcy petition and book.When facing financial adversity, Chapter 13 bankruptcy is among the promising options for individuals with regular income to achieve debt relief. In a Chapter 13 case, the consumer will propose a feasible repayment plan – structured over 3 to 5 years – to settle their debts using their future income. However, if you cannot make the payments, you may be eligible to modify the repayment plan in your Chapter 13 case.  

If you are thinking about modifying a repayment plan under chapter 13, The Law Offices of David K. Blazek, P.C. can provide options and guide you through the process. Attorney David Blazek is available to discuss your specific situation, help determine your eligibility, and walk you through the Chapter 13 repayment plan modification process. The firm is proud to serve clients across Tampa, Miami, Orlando, and Jacksonville, Florida, as well as Macon, Atlanta, and Columbus, Georgia. 

Common Reasons for Modification  

Life is full of several uncertainties and lots of ups and downs. While you may enter into a Chapter 13 repayment plan in good faith, an unfortunate event can make it extremely difficult or impossible to make your payments. Here are some common reasons to modify a Chapter 13 plan payment: 

  • A substantial decrease in income due to job loss, reduced hours, or career change. 

  • You need to purchase health insurance coverage. 

  • You want to change the amount you’re paying to certain creditors. 

  • Your household size has increased due to more children or dependents. 

  • Marriage – this may lead to an increase in household expenses. 

  • Divorce – the need to pay alimony or child support. 

  • A medical emergency, severe illness, or temporary incapacitation. 

  • Major vehicle repair after an accident. 

  • Other emergency or unexpected expenses. 

Unfortunately, any of these can eat deep into your disposable income and make it challenging to keep up with your Chapter 13 plan payments. A knowledgeable Florida Chapter 13 bankruptcy attorney can explore your options to change a bankruptcy repayment plan and help determine the best course of action.   

Modifying a Chapter 13 Repayment Plan 

In Florida, a consumer may be eligible to modify a Chapter 13 repayment plan before or after the plan has been confirmed. 

Option 1 – Before the Plan Is Confirmed 

If your financial situation changes before your Chapter 13 repayment plan is confirmed, you can approach the court and your creditors and explain your condition. Next, you should file a modified plan for your creditors and the trustee to consider. Once every party is satisfied with the newly proposed repayment plan, the Florida court will confirm it. 

Option 2 – After the Plan Is Confirmed 

However, if the Florida court has already approved your Chapter 13 repayment plan, you will need to file a motion requesting the court to adjust the plan payments to an affordable amount. A hearing will be scheduled where you will explain to the court and the trustee your reasons for seeking modification of the payment plan.  

Also, you may need to provide substantial evidence that indicates a material change in circumstance. If the court is satisfied with your reason, an adjusted plan will be confirmed for the rest of your case. 

Limitations on Repayment Modification 

However, there are certain limitations to modifying a repayment plan. You may be unable to change payments for the following debts: 

  • Fines and taxes. 

  • Domestic support obligations, such as spousal support and child support. 

  • Mortgage arrears on assets and properties you intend to keep. 

Unless you relinquish a property that you were paying arrears on, you may not be able to reduce your plan payment. A trusted bankruptcy attorney can review the surrounding circumstances of your unique situation and determine whether you can convert your case to Chapter 7 bankruptcy through a hardship discharge. 

Get the Skilled Guidance You Need  

Life’s financial curveballs, including a medical emergency, job loss, divorce, or major vehicle repair, can make it difficult to meet up with your Chapter 13 plan payments. When this occurs, changing the repayment plan might be your only option. Attorney David Blazek has the resources and knowledge to assist and guide clients through the complex procedures involved in modifying Chapter 13 repayment plans.  

As your legal counsel, he can evaluate your unique financial situation and help determine whether you’re eligible to change your repayment plan. Also, he will determine whether you qualify for a hardship discharge and guide you through the legal procedures involved.  

Do you need proper guidance modifying a Chapter 13 repayment plan? Contact The Law Offices of David K. Blazek, P.C. today to discover your options. Attorney David Blazek has the reliable guidance and advocacy you need to navigate key decisions. The firm is proud to serve clients across Tampa, Miami, Orlando, and Jacksonville, Florida, as well as Macon, Atlanta, and Columbus, Georgia.