Clients considering a Chapter 13 bankruptcy are often afraid they’ll be stuck in a payment plan they can’t afford if something changes during the plan period. As I often tell clients, life doesn’t stop just because someone files Chapter 13 bankruptcy so the chances of some unforeseen circumstance disrupting their income are good. Although some clients go the entire 3-5 years without needing a plan modification, more often then not, something will happen that requires a change in the plan payment. Job loss, car repairs, home repairs, medical bills, tax debt. All of these and more might require that a plan be modified to address a borrower’s new budget. To modify a plan a motion must be filed with the court explaining why the modification is needed and what the new payment plan is to be. The process for obtaining approval of a modified Chapter 13 plan generally takes at least 45 days so plan modifications can’t be done quickly to reflect month-to-month changes in a borrower’s budget. But if change in the plan payment is necessary, borrowers can be confident they won’t have to continue making a payment they can’t afford. If you’re in a Chapter 13 plan currently and are anticipating some change that will make you unable to make your plan payment contact us as soon as possible so we can propose the necessary modification.