Chapter 13

[missouri]

What happens if you cant keep up your Chapter 13 payments? We are totally strapped for cash to make our Trustee payment.

[momofthree]

How was your payment arrived at? Has your situation changed (pay cut, job loss, increased necessary expenses)? Are you trying to keep non-exempt assets, or a home that is difficult to afford?

To answer your question, if your situation has changed and you have wiggle room in your plan (meaning you're paying more than the ch.7 liquidation cost, and a significant amount to unsecured creditors), then you should be able to amend your plan to reflect the change in income.

However, if nothing has changed, and you're just struggling to live on a budget, then if your don't pay your payment, your plan can be dismissed and all of your debt comes back plus penalties and late fees, and you creditors can take legal action against you.

[missouri]

We tried to keep a rental property in our plan because we didnt want our renters to have to move. They stayed but the house is trashed and we are struggling to rent it again. Big mistake on our part!
We went to our attny in the beginning of November to ask the court to remove the house from our plan. She said the papers would be ready before Thanksgiving, but after several phone calls, she called a few days ago
to say they are finally ready. Do you think the court would remove the house?

[momofthree]

Yes, you should be able to amend your plan to surrender the house and adjust your schedules to subtract out the rental income. You may also ask if this would allow you to convert to a chapter 7.