does my bankruptcy lawyer have to help me when i need a modification on my chapter 13

Can I get a loan modification while in bankruptcy?

The answer is yes. You can obtain a loan modification of your mortgage while you are in an active Chapter 13 bankruptcy. However, you must obtain court permission to complete the process. While you are in an active Chapter 13 bankruptcy, you cannot incur new debt without permission from the Bankruptcy Court.

Can you restructure a Chapter 13?

Generally, a bankruptcy cannot be modified after it is filed. However, since Chapter 13 Bankruptcy is a repayment plan over 3-to-5 years, it is possible your circumstances may change since your bankruptcy was filed.

How do I amend my Chapter 13 plan?

To obtain a plan moratorium or modification, you must file a motion, either on your own or through counsel, with the bankruptcy court. You also must give notice of the motion to the Chapter 13 trustee, creditors, and other parties in interest in accordance with the local rules for the district where you live.

What is modification in a Chapter 13 case?

Modification is a process that must be approved by the Court. When your Chapter 13 case begins, it must be approved by the Court through something called a Confirmation Order. The Confirmation Order essentially locks your case into place and sets out the terms of your Chapter 13 plan.Aug 30, 2017

What is a hardship discharge in a Chapter 13?

A hardship discharge is a discharge the court grants you before you complete all of the required payments under your Chapter 13 repayment plan.

What happens if your income decreases during Chapter 13?

Answer. If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can ask the court to modify your Chapter 13 repayment plan and reduce your payment amount. Whether the court will allow you to lower your plan payment will depend on several factors.

Can you amend a Chapter 13 plan after confirmation?

A motion to modify a confirmed Chapter 13 plan (also called a motion to amend confirmed plan) is filed typically by the debtor, but these motions can also be filed by the trustee or a creditor with an allowed, unsecured proof of claim.Apr 26, 2018

Can I make extra payments on my Chapter 13?

Your monthly Chapter 13 payment amount is partially determined by your discretionary income. An increase in income, along with unchanged costs for approved essentials, means your extra funds are viewed as discretionary income. In this situation, the court can increase your monthly payments under the plan.Jul 13, 2021

What happens if my income increases during Chapter 13?

An Increase in Income During Chapter 13 The amount you are required to pay towards your debts is based on your income minus your necessary expenses, such as rent or a mortgage payment, utilities, transportation, food, and medical care. Essentially, you will pay all of your disposable income toward your liabilities.

What is a plan modification?

Plan modification is characterized as a process of removing inconsistencies in the validation structure of a plan when it is being reused in a new (changed) planning situation.

Does Chapter 13 trustee check your bank account?

Does Chapter 13 Trustee Check Your Bank Account? Yes, it's highly likely that your appointed trustee will check both your personal bank accounts and any business-related bank accounts which you may have under your name.Jan 23, 2022

Will my credit score go up after Chapter 13 discharge?

Your credit score after a Chapter 13 Bankruptcy discharge will vary. Your new score will depend on how good or bad your credit score was prior to the filing of the Chapter 13 Bankruptcy. For most individuals, you can expect to see quite a dip in your overall credit score.

How does Chapter 13 bankruptcy work?

Understanding Chapter 13 Bankruptcy. Chapter 13 bankruptcy works by allowing you to catch up on certain payments. You propose a repayment plan, and if the court confirms (approves) it, you'll make monthly payments over the course of three to five years.

What happens if you dismiss a Chapter 13 bankruptcy?

If you choose to dismiss your Chapter 13 plan, you won't have the protection of the bankruptcy court. You'll be free to work with your creditors on your own, but your creditors will also be free to take whatever collection actions are allowed to them under state and federal law. Talk to a Bankruptcy Lawyer.

Can you modify your mortgage if you have a Chapter 13?

Even though you're paying mortgage arrearages through a Chapter 13 plan, you can still work with your lender to modify your mortgage. It's not at all unusual for a borrower to file a Chapter 13 case to stop a foreclosure and then apply to the mortgage company to modify the terms of the loan. When you're applying for a modification, you're asking ...

Can a Chapter 13 bankruptcy stop foreclosure?

But they can also work well together. A Chapter 13 bankruptcy can protect your investment by helping you bring a past due mortgage current. Additionally, it can stop a foreclosure and provide you with the time you need to work out a modification with your lender.

What do bankruptcy attorneys do?

Almost all bankruptcy attorneys have specialized software that prepares and files your required bankruptcy paperwork with the court. You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information.

How to file for bankruptcy?

First, you can expect your attorney to tell you whether filing for bankruptcy would be in your best interest. If it is, you should also learn: 1 whether Chapter 7, Chapter 13, or another type will help you achieve your financial goals 2 what you can expect during the bankruptcy process, and 3 whether your case involves any particular difficulties or risks.

What to expect during bankruptcy?

Most importantly, if you have any questions, you can expect your attorney to respond to your calls or emails promptly.

What is the mandatory hearing for bankruptcy?

After filing for bankruptcy, all debtors must attend a mandatory hearing called the 341 meeting of creditors. But, depending on your case, you (or your attorney) might need to go to additional hearings. Some common types of hearings you can expect your attorney to represent you at: Chapter 13 confirmation hearings.

What is a retainer agreement?

In general, your retainer agreement (the contract you and your attorney sign) will outline the services your bankruptcy attorney will provide . Your attorney's job is also to provide you with competent advice throughout the bankruptcy process.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

Is filing for bankruptcy a good idea?

Filing for bankruptcy is a great way to get out from under burdensome debt, and most people feel a tremendous sense of relief when their bankruptcy case is over. But understanding the process and filling out the bankruptcy forms can be daunting. That's where a bankruptcy lawyer comes in. Not only will you receive legal advice, ...

How long does a Chapter 13 bankruptcy last?

But a Chapter 13 plan typically lasts three to five years, so it's not uncommon to experience a significant change in financial circumstances. If you can't continue to make your payments, you can ask the court for ...

What is Chapter 13 hardship discharge?

A Chapter 13 hardship discharge is similar to a Chapter 7 bankruptcy discharge, and some debts survive Chapter 7 because it wipes out only dischargeable nonpriority unsecured debts. A Chapter 13 hardship discharge won't eliminate the following types of debts: priority debt. student loans, and.

What is hardship discharge?

A hardship discharge is a discharge the court grants you before you complete all of the required payments under your Chapter 13 repayment plan. To receive a hardship discharge, you must file a motion with the bankruptcy court and satisfy all three of the following conditions: You failed to complete your payments because ...

What happens to unsecured creditors in Chapter 7?

The amount of money your unsecured creditors would have received in Chapter 7 bankruptcy depends on the amount of nonexempt property you own. Nonexempt property gets sold in Chapter 7. By contrast, you pay your creditors for nonexempt property as part of your Chapter 13 repayment plan—which is why you get to keep it.

Can you change your income in Chapter 13?

It's not uncommon for a debtor to have an income change during a Chapter 13 case. If you can't pay your current payment, you'll want to see if it can be adjusted before you drop out of your plan altogether. Your bankruptcy lawyer will review your matter and advise you of the best course of action.

Can you modify your Chapter 13 plan?

When Is a Chapter 13 Plan Modification Not Feasible? If your circumstances change after filing for Chapter 13 bankruptcy, bankruptcy laws allow you to modify your plan accordingly. For example, if your income goes down during bankruptcy, you might be able to modify your plan to reduce your payment amount.

What happens if you file Chapter 7 bankruptcy?

In Chapter 7 bankruptcy, most or all of your debts are discharged. In exchange, the trustee is entitled to sell your nonexempt property and use the proceeds to pay your unsecured creditor. That means that if your home has a significant amount of nonexempt equity, the trustee will sell it. To learn if your home has nonexempt equity, see Chapter 7 Homestead Exemption.

How does bankruptcy work?

Here's how it works. If you don't have enough equity in your home to secure the second or more junior mortgages, then the bankruptcy court can "strip" the liens securing the mortgages and reclassify the debt as unsecured. This debt then gets paid off through your repayment plan.

Does bankruptcy affect mortgage payments?

Chapter 13 bankruptcy does not affect your home mortgage. You continue to make your mortgage payments during and after the bankruptcy. If you are behind in mortgage payments, you can pay off the arrears through your Chapter 13 repayment plan (which lasts three to five years). As long as you make your current mortgage payments ...

Can you modify a mortgage in bankruptcy?

In some instances, you can modify a mortgage in Chapter 13 bankruptcy so that the new principal equals the actual value of your home. For example, if your mortgage is $500,000 but the property value has declined to $300,000, you could modify the mortgage amount to $300,000.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

Can you keep your home if you file for bankruptcy?

If you file (and qualify) for Chapter 7 bankruptcy and your home is exempt, you can continue to make your mortgage payments if you want to keep your home. Although the bankruptcy will discharge your personal liability for the home loan at the end of the case, the lender's security interest in the property remains in force. So, if you don't make your payments, the lender can foreclose.

How long does a Chapter 13 bankruptcy last?

In Chapter 13 bankruptcy, you agree to pay your disposable income to the bankruptcy trustee appointed to administer your case for three to five years. On successful completion of the plan, any remaining balance on nonpriority unsecured debt (credit card balances, personal loans, medical bills, and the like, but not student loans ), ...

How long can you keep your property in Chapter 13?

In Chapter 13 bankruptcy, you're allowed to keep all of your property and repay your debt over a period of three to five years through a court-approved repayment plan. (Learn about the Chapter 13 repayment plan .)

How does income affect bankruptcy?

Your income determines the minimum length of time you must make payments, called the applicable commitment period . Here's how it works. Below your state's median income. If your income is less than the median income in your state and you want to file Chapter 13 bankruptcy instead of Chapter 7 bankruptcy, you must pay all ...

Can you end a payment plan early?

Exception: You Can End a Plan Early After Paying Debts In Full. There is one situation where the court will allow you to pay off your plan early—and that's when you pay creditors 100% of their claimed amounts. If you pay all that you owe, there won't be a need for a payment plan.

Can I choose my attorney for Chapter 13 bankruptcy?

Any new attorney will likely be able to collect his fee as part of the monthly payment you send in to the trustee and so should not seek a large upfront retainer. It is not easy for a new attorney to jump into the middle of a chapter 13 like this but as long as you find a competent attorney that has a lot of chapter 13 experience everything will be fine.

Do you have to pay a retainer for Chapter 13?

Once the case is confirmed, the attorney has earned the balance of the legal fee according to most retainer agreements and the Trustee pays the balance of the legal fee to the attorney (or his estate, unless received in full prior to his death). Any additional work that would need to be performed after the confirmation would typically not be included in the flat fee & would be extra. So until the time comes when you need an attorney, you may not need to have cash in hand right now. But in the future, you will need an attorney to alter your plan, and you would have needed to pay even your original attorney for performing the additional work, so I see no change in the cost to you.

Do you pay attorney fees?

Most of the fees that you pay to your attorney are earned in the beginning of the case. You should look at the contract that you signed with the attorney but I' m not sure that you would be able to recover the fees from the attorney . Often times making changes to your plan also require additional fees. I would just suggest speaking to the attorney at his firm or looking for a new attorney to take over the case.

What is post confirmation work?

In general, post-confirmation work in chapter 13 cases involves additional fees regardless of whether it is with the same lawyer or a new one. You might ask the new lawyer whether he is willing to put most of the additional fees into the modified plan, but it is very common for lawyers to ask for additional funds up front before doing work on a motion to modify a chapter 13 plan.