Chapter 13 Plan Modifications
Sometimes the Chapter 13 plan needs a modification. Your income may have dropped and you need a Chapter 13 plan modification to lower payments. Your mortgage company didn’t file a claim and now you may have to file a claim for them and include that claim with a Chapter 13 plan modification. You became disabled for a month or two and you need a Chapter 13 plan modification to allow you a couple of months off from payments. Chapter 13 plan modifications normally only needs a motion, new completed budget and affidavit to modify your plan.
Why Would You Want Modifications?
There are a number of reasons to modify the plan which can include secured creditors not being paid enough so the amount paid to unsecured claims may have to be lowered instead of raising payments. The Chapter 13 is flexible in allowing some things in our district. It is pretty inflexible in others such as missed payments or a failure to turn over the tax refund.
The point to remember is that your Chapter 13 plan can be modified. The Chapter 13 can be converted in most cases if you waited 8 years after your last Chapter 7 before you filed this Chapter 13. But new schedules have to be submitted. If not your Chapter 13 can be dismissed and refiled as a Chapter 7 or another Chapter 13. If the timing and waiting periods have properly been satisfied.
Advantages of Chapter 13
There is no absolute right to dismiss a Chapter 7 but there is just about an absolute right to dismiss a Chapter 13 if you need to. This may be because you no longer need the Chapter 13 after you have changed your mind about keeping a home. There are several reasons for filing a Chapter 13 because not enough time has passed to file a Chapter 7. It may be because you need the protection temporarily.
Perhaps you became disabled and it will take a period of time before all of the debts come in from several surgeries in a hospital. After all the medical debts are in and your disability has ended now you can convert and file discharging all of the debt in a Chapter 7. You may have to make the payments in the plan, but a Chapter 13 is like a chameleon always changing to your needs for a fresh start.