Decrease in income in chapter 13

[brokenymom]

I am presently 14 months into ch 13. Filed single without my husband and my only secured creditor is automobile. I am on a tiered program for payback. $630 for month 1-15, $1330 month 16-27, and $1717 for remainder of plan. Due to economy my salary is decreasing by at least 10k. Spouse's income will be greatly reduced as overtime is limited because they are now on 10 hour shifts. His decrease in pay will be at least another 10k if not more. My questions is how long do we have to wait to see if I can get my plan amended? Also forgot to mention in the last year the price of everything has gone up. Gas, utilities, food ect.... Any input would be greatly appreciated.

[enginegirl]

you can always file an amendment. talk to your atty!

[woeisme]

We had to amend our plan because my husband got injured and went from working fulltime to disability pay, which is 50% of his regular salary. We had to wait until the changes actually happened (can't file based on "anticipated" changes) but were able to get a 3-month suspension of payments while the disability paperwork got sorted out and he got approved for disability, then payments reduced from $1100/month to $400. Had to fill out a new budget worksheet and totality of circumstances were taken into account (decreased pay for hubby, but my raises also needed to now be taken into account, can't be selective about only negative changes. Plus we no longer needed daycare with hubby at home, so lost that $300/month expense, etc.) Also keep in mind that all our debt was unsecured, if you are paying off secured debt in your CH 13, you still need to pay it or surrender property, so there may be a limit to what you can reduce your monthly payment too. Our only secured was mortgage and paid outside plan, so not an issue. Good luck!

[justbroke]

The only thing you need to worry about is whether you are required to pay a minimum amount due to the Chapter 7 Liquidation Test or some other issues with paying priority debt, such as taxes. Usually, a stepped plan is done to paydown certain secured debt, not to deal with unsecured debt, so I'm thinking that your payment may not be able to be reduced.

Of course, this should be reviewed with your attorney. Anytime your finances change, whether for the good or the bad, should immediately be addressed with your attorney. Too many people wait until it gets really bad before they say anything.