Losing a job during a Chapter 13 repayment plan can make it difficult to keep up with your monthly obligations. But a change in your income doesn’t mean that your case has to come to an end. If you lose your job, have a medical emergency, or experience a significant loss of income, an experienced chapter 13 bankruptcy lawyer can review your situation and advise you on whether a modification to your plan may be appropriate. At Massachusetts Bankruptcy Center we help individuals throughout Massachusetts understand their options for maintaining financial stability and finding debt relief. Should your financial situation change significantly, your attorney may be able to file a formal motion requesting that the bankruptcy court modify your repayment plan. That request could be for a lower monthly trustee payment or something else that takes your current ability to pay into account, depending on your situation. In certain cases of hardship, a temporary suspension may be granted, subject to judicial approval. The important thing is to not stop making payments until you have spoken to a lawyer. If you miss payments and don't let us know, your bankruptcy case could be dismissed. Timely notice to your attorney gives him/her time to determine what remedies may be available and to negotiate with the trustee when appropriate. An experienced bankruptcy attorney can help you understand what is required to modify your plan and can work with you toward a solution that accommodates your changed circumstances while keeping your long-term debt relief goals in mind.
