Can your Chapter 13 plan payments go up? Yes they can! But how and why?
After all, you went with your attorney to the Meeting of Creditors and your Chapter 13 Bankruptcy plan was confirmed.
The answer to this question is that either the trustee or a holder of an unsecured claim can seek to have your Chapter 13 Plan changed (Changing a plan is also referred to as a “modification”) if it can be shown that your financial condition has improved since your plan was originally confirmed.
In order for the trustee or unsecured creditor to be successful in increasing your plan payments they must file a motion with the bankruptcy court and give you and your attorney notice so that an objection to the increase can be made.
The trustee or unsecured creditor must show that your financial situation has improved in order to obtain a modification increasing your payments.
The bankruptcy court will usually schedule a hearing at which time you would have the right to object to the proposed modification.
A request to increase your plan payments should not be taken lightly or ignored. It is important that you contact your attorney immediately to make sure that any objections are made in a timely and correct manner.
So what happens if your situation gets worse and you can’t continue to pay the amount required by your confirmed plan?
Stay Tuned!
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