Amending chapter 13 payments any advice?

[brokenymom]

Hi there,
Have been in ch 13 since 11/09. Have been paying $630 month which is scheduled to go up in July to $1330 month. Have taken a reduction in income since January. $2 hourly plus approx $1k comission. Meeting with attorney next week for possibly amending. He requested pay stubs and last years taxes. (Which show an approx 9k decrease in income). The only secured debt I have is auto which will be paid off in August thru bankruptcy, the rest is unsecured . Has anyone amended their plan recently and how hard is it? I have kept track of family finances since filing. The cost of fuel has gone up $1.50 gallon gas, along with everything else. Do they take inflation into consideration with reduction of wages? Any advice is greatly appreciated. thanks

[kornellred]

Why is your payment scheduled to take a $700 jump in July? It has to be due to a previously anticipated circumstance which is bound to happen. Your decline in wages does not seem to be enough to offset the scheduled huge increase in the plan payment. I think it is reasonable to assume that some reduction in your plan payment will happen on the basis of your lost income, but nowhere near enough to offset that big jump coming up in July.

[brokenymom]

old 401k loan was supposed to be paid off. I am no longer at the job i was at. most of my disposable was was based on take home comission which is lower by 1k a month after taxes. not to mention the $2hour decrease in pay

[despritfreya]

If your Plan payment jump was based upon "projected disposable income" when your Plan was confirmed and that projection has not materialized (new job, less income etc.) there should not be a problem modifying the Plan to reduce the payout to unsecured creditors. You must still pay those creditors what they would have received had you filed a Chapter 7. This means they must get the approximate value of any non-exempt assets you may have had at that time.

Meet with your attorney and absolutely bring your proof of income and expenses.

Des.

[brokenymom]

thanks. i am at wits end. i have monthly bills for everything. wish me luck

[tigergem]

I know you have an attorney, but if it is any consolation to you, I have found it to be relatively easy to modify my plan and even reduce both my monthly payments and number of payments, even as a pro se filer.