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When you file for Chapter 13 bankruptcy, you’ll likely find that you feel like a significant weight has been lifted from your shoulders. However, your circumstances may change over the duration of your plan, and you may find that you are no longer able to afford the payments. Depending on the circumstance, you may be able to work with your bankruptcy trustee to alter your obligations. If you need to modify a Chapter 13 repayment plan, understanding how to do so with the help of a Memphis, TN Chapter 13 bankruptcy lawyer is critical. The following blog explores what you should know about altering your plan.

What Is Chapter 13 Bankruptcy?

When you want to file bankruptcy, understanding your options is critical. Generally, you’ll find that unless you are below the median income level for Tenessee, you must file for Chapter 13 bankruptcy. If you are below the median income, you’ll find that you may qualify for Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy means that you will begin a repayment plan. Essentially, this means that your bankruptcy trustee will reorganize your debts on your behalf, and you will make one payment each month. The trustee assigned to your case will then distribute your money to creditors. This plan will last three to five years.

Why Might I Need to Modify a Chapter 13 Repayment Plan?

There are many reasons someone may need to make changes to their Chapter 13 repayment plan, such as losing their job, receiving a chronic health diagnosis, and getting a divorce may all impact someone’s ability to follow their Chapter 13 bankruptcy plan.

To receive a modification, you must apply for a new plan by filing a motion with the courts. Generally, you will explain why you need the modification and provide any evidence you have to support this claim. It’s important to understand that your trustee and creditors must agree with the terms of the new repayment agreement. If no one objects, the new plan will be granted.

In some instances, such as suffering from permanent circumstances, you may qualify for a hardship discharge. Essentially, so long as you have met the “best interest” of the creditors, the courts will wipe out certain debts.

What Should I Do if I Need Help?

As you can see, applying for a repayment plan modification can be an overwhelming process. As such, it’s in your best interest to connect with an experienced attorney who can help you navigate these complex matters by filing the correct paperwork and obtaining the necessary evidence to support your claims. Additionally, they can fight on your behalf to help you achieve the best possible outcome for your circumstances.

When you need assistance, the Arnold Law Firm can help. Our dedicated legal team will do everything possible to assist you through these complex times to help you get the financial fresh start you need for this process. Connect with our team today to learn how we can assist you.