Self employed can ch 13 payment be reduced?

[nomoneyinsc]

Hi. I am self employed and my income has dropped dramatically in the time since we've filed. We own our home and have a rental property my mother in law is living in. We are 3 months into paying $975/mo and are not paying at 100% payback.

My question is this. If the income can be verified can our payments be reduced to a more managable amount? We need to and want to keep both homes.

Thank you.

[HHM]

Well, your statement about "needing" to keep is never true for anyone, but "wanting" to keep is more accurate. There are always housing options.

If your only 3 months in, has your plan even been through confirmation? If you are pre-confirmation, you can amend your plan at anytime. If you are post confirmation, you need to file a Motion to amend your plan. If you are only 3 months in, I would expect an uphill battle on getting the plan amended this early, but if you have good documentation the court may approve the reduced payment.

[nomoneyinsc]

It has been confirmed. Thanks for your response. I have sent an email to my lawyer asking for options. My income has decreased an average of $2000/mo since the plan was proposed.

[MommyMc]

We are going in to see our lawyer today to change ours. I work in direct sales- so technically I am self-employed. Business has been really bad for me with the economy the way it is, I've lost my "team", I no longer make money from their sales. Our lawyer made us wait 30 days from the time I lost my team to prove there was no money coming in. I was contributing $971(according to our court papers... it fluctuated each month depending on my team sales) a month to our household income (after business expenses, taxes,etc).
We are amending ours and I am basically giving up the job. We have to pay $600 to go through this process again, we just filed in December.
Good luck to you!

[nomoneyinsc]

Let me know how you make out and I'll do the same. I'm waiting to hear back from my lawyer now.
Good luck to you too!

[car67]

I had a severe drop in sales and my payment was dropped to $100 per month for the next three months based on my attorney filing the motion.... If things dont pick up
in three months then I will be converting from 13 to 7

[maddog2112]

Car67, do you own a home and or car payment and are they in the 13.

[Flamingo]

It has been confirmed. Thanks for your response. I have sent an email to my lawyer asking for options. My income has decreased an average of $2000/mo since the plan was proposed.

With that large a drop can you actually afford to keep your home? How much equity is in the house?

[car67]

yes I have home and car payment not in the plan paid outside