So, you filed a Chapter 13 bankruptcy, had the plan confirmed, and are happily making your payments. In many cases those payments include the mortgage on your home. And then it happens: the interest rate adjusts, and your house payment jumps $200 or more!
Now what? First of all, don’t panic. Go see your attorney. One of the best things about a confirmed chapter 13 plan is that it can be modified. A change in a secured payment is a perfect reason to adjust the plan.
Changes don’t just mean increasing your payments. Often, when this happens you can reduce the amount you are paying to unsecured creditors or stretch the term of the plan longer. The payment will stay the same!
If you are paying the mortgage outside of the plan, you can amend the schedules filed with the bankruptcy court, and modify the plan to reduce your payments accordingly.
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