The good news is that there are always options available when a person confronts difficulties with this type of bankruptcy filing. You or your spouse could be laid off, or a member of your family could contract a serious illness. Any of these circumstances could have a devastating effect on the financial health of a family. When changes occur, it is recommended to contact your bankruptcy attorney as soon as possible. Waiting could result in an inability to make Chapter 13 plan payments, leading to dismissal. A bankruptcy lawyer understands how to modify the bankruptcy plan. However, they are not mind readers, so if you do not contact him, they will not know until it is too late.
If your financial difficulties are only transitory, your bankruptcy attorney may petition the court to modify the payment plan to excuse the missed payments. If it will be for a lengthier duration, they may also request a reduction in payments until you can get your life back on track. A bankruptcy attorney may also advocate for a reduction in the amount paid to unsecured creditors, which would substantially reduce payments. The Chapter 13 Bankruptcy Trustee is aware that life circumstances can change and does not anticipate that the current plan will never be modified.
In the current job market, there is always the option to convert to Chapter 7 bankruptcy if job loss is causing a problem. When people are laid off today, they may even need to contemplate switching careers. There are relatively few jobs available, and those that do exist do not pay very well. Sometimes it becomes unavoidable that you will be unable to continue, and converting to Chapter 7 bankruptcy may be the only option.
When converting from a Chapter 13 to a Chapter 7 bankruptcy, the debtor must consult with their bankruptcy attorney. There are numerous other potential alterations. Due to the changes in a person's financial circumstance, it may be time to sell the home. Now is the time for the debtor to take a serious look at what they envision for their future. Here is where a bankruptcy attorney can be of great assistance in navigating the complexities of the bankruptcy code.""
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