Family Medical Leave and Chapter 13 Payments

25 Jun Family Medical Leave and Chapter 13 Payments

If your Chapter 13 payments are set by the Means Test and not only by mortgage and priority tax arrears, then a Family Medical Leave can reduce your payments.

The Means Test looks at your average monthly income for the six month period ending with the month before your filing. If you have not yet filed the bankruptcy case, you can take the leave and, upon your return, use it to have reduced your average monthly income and your required Chapter 13 payments.

If you have not yet filed but cannot wait until the leave is used, then you an argue that the anticipated leave is a Special Circumstance justifying a reduction to your Means Test required payments.

Finally, if you have already filed and your Means Test required payments are set, then you can use the leave to reduce payments through a modified plan, or seek a Chapter 13 hardship discharge, or convert to a Chapter 7 case.

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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