Chapter 13 / Divorce / Non-Filing Spouse

[DebtMan2020]

Hi All,

Filed my chapter 13 in December 2019, its a 5 year plan. Most debts were in my name so my wife did not file, as to preserve her credit score. There are a few joint debts in the case, however.

My question is, I am getting divorced, thus my wife's income is not a factor in my household any more. It was included in the BK even though we only filed in my name. Now, I know I can request to modify the plan to lower the payments, BUT - since my single income is lower than the medium income in my state, has anyone ever heard of modifying the plan from 5 to 3 years? I know that's a little weird but it would be great if possible, obviously.

Let me know what you think!

[shipo]

Have you considered converting to a Chapter 7? Given your income, on the surface at least, that would seem your best option.

[justbroke]

I have never heard of modifying a Chapter 13 from a required 5 years to a 3 year plan, without paying 100% of hte allowed secured claims. Your plan duration is based on your income at the time of filing. This is known as your commitment period. Since your commitment period was 5 years when you filed, it will always be 5 years for that specific filing (case).

Now, as shipo writes, you could consider conversion. Your State (bankruptcy district) may have specific requirements for conversion to a Chapter 7. that could include filing a new Schedule I/J. It may also require that you otherwise qualified for a Chapter 7 at the time you filed the Chapter 13. This is why you would need someone from Pennsylvania qualified to answer the question on conversion to a Chapter 7, when you didn't qualify for a Chapter 7 at the time of filing the Chapter 13.