The Chapter 13 Process – Part 8

08 Oct The Chapter 13 Process – Part 8

So, the plan is confirmed, you are making payments and the claims have been filed, objected to, or allowed.  Now what? 

Many things can happen (and usually do) during the period of a Chapter 13 plan.  You can lose your job, get a better job, get ill, decide to sell your house, or get a terrific refinance deal.  These are normal events in a person’s life, and just because you are in a Chapter 13 plan doesn’t mean they won’t happen to you. 

But, as my friend and colleague Cathy Moran wrote about in a recent post, Chapter 13 plans are exceedingly flexible.  You can dismiss the plan and the case, pretty much at any time, and you can file a motion to modify the plan.  Thus, if you come into some money or can refinance your house to pay everything off, you can.  If you run into some bad luck and need to reduce, or even stop, making payments, you can convert the case to a Chapter 7. 

In fact, modifications are so normal that its unusual (at least in the Eastern District of California) for a Chapter 13 to go all the way from confirmation to discharge without at least one plan modification. 

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.
Douglas Jacobs is a California bankruptcy attorney and partner in the Chico law firm of Jacobs, Anderson, Potter & Chaplin. Since 1988, Mr. Jacobs has taught Constitutional law and Debtor-Creditor/Bankruptcy law at the Cal Northern School of Law. He has served as Dean of Students since 1994. He is a frequent lecturer on the subject of consumer bankruptcy law, and has spoken at both state and national levels.
No Comments

Sorry, the comment form is closed at this time.