Modifying our payment amount.

[scotthey]

So we've been in Chapter 13 for over a year and are scheduled to be complete with BK in October 2017. (We're 100% payback @ 42 months
I believe it was)

About 6 months ago I took a pay cut. (30%) I've been doing everything I can to keep up with the payments and haven't missed any but it's becoming a real problem for us now as our savings is depleted. I've read that it is possible to get a modification if you receive a pay cut but I can't seem to find out where to find the correct forms.

I'm doing it alone because my attorney has been paid and no longer feels obligated to assist us, it seems. He no longer responds to emails or calls and to be honest, I'd rather not deal with that arrogant pile again anyway. (Just FYI.... I've sent two emails since the confirmation, so I'm not a problem client.)

I'm in the western district of Michigan and any advise would be greatly appreciated.

Thanks,

Scott

[LadyInTheRed]

Yes, you should be able to get a modification, but I couldn't tell you how to do it on your own and wouldn't advise you to do so. You may want to see if you can find another attorney to take over your case. But, that might be difficult.

Have you told your attorney in an email or telephone message that you want to modify your plan because of significant reduction in income? He would be entitled to additional fees for that work and those fees would be paid out of your plan payment. So, if your theory about why he has ignored you is correct, he should be inspired to return a call regarding a modification. Dealing with an arrogant pile sure beats having your case dismissed.

[scotthey]

Thank you for the reply. I've sent him an email asking what steps need to be taken to accomplish this.

Hopefully I'll hear back from him, otherwise I don't know what to do.

[despritfreya]

I've read that it is possible to get a modification if you receive a pay cut. . . I'm doing it alone because my attorney has been paid and no longer feels obligated to assist us. . . I've sent him an email asking what steps need to be taken to accomplish this. Hopefully I'll hear back from him, otherwise I don't know what to do.

There are many things that go into modifying a Plan the least of which has to do with the reason you were set to pay 100%.

If that reason was simply because you could afford to and now you cannot, modification would be proper. Assuming you were an "over median income" filer expect to remain in the bk for a full 60 months unless, even with the modification, you pay all allowed claims sooner.

There are other reasons for 100% payment plans such as having non-exempt assets where the value of those assets meets or exceeds the amount owed to unsecured creditors.

As to your attny, he/she is your attny until the Court enters an Order allowing him/her to withdraw. Yes, he/she will charge for additional services IF the fee agreement you signed allows for this. Find your fee agreement and review it.

If your attny will not respond to emails, phone calls etc, simply call his/her office and set an appointment. You do not want to be doing this on your own.

Des.

[scotthey]

There are many things that go into modifying a Plan the least of which has to do with the reason you were set to pay 100%.

If that reason was simply because you could afford to and now you cannot, modification would be proper. Assuming you were an "over median income" filer expect to remain in the bk for a full 60 months unless, even with the modification, you pay all allowed claims sooner.

There are other reasons for 100% payment plans such as having non-exempt assets where the value of those assets meets or exceeds the amount owed to unsecured creditors.

As to your attny, he/she is your attny until the Court enters an Order allowing him/her to withdraw. Yes, he/she will charge for additional services IF the fee agreement you signed allows for this. Find your fee agreement and review it.

If your attny will not respond to emails, phone calls etc, simply call his/her office and set an appointment. You do not want to be doing this on your own.

Des.

He DID respond this time!! I sent in the pay stubs he requested and am waiting to hear what's next.



We are in a 100% that was initially set to be done in I believe it was a total of 46 months. It was a high payment before my pay cut and now while it has been doable, it leaves little for gas/groceries. (Sometimes less that $150, family of 4) The reason for our 100% plan was because we could afford to pay it back. What I don't understand fully is why the payment was set so high in the first place when we could have used the entire 60 months and made it a reasonable amount. I've been under the impression that the bankruptcy courts must want people to fail.