Home > Research Legal Advice > Bankruptcy / Chapter 13 > Need to know what goes on at a bankrupcy hearing chapter13
Asked 6 months ago - New Hill, NC
Flagmy husband lost his in June of this year filed chapter13 we were paying 500.00 want to know if i can get payments reduced or file a hardship discharge want to keeponecar though
Whether you can get a reduction in your monthly payments in a Chapter 13 bankruptcy case, or whether you will be able to get a hardship discharge will depend upon a number of factors.
First, the monthly payment you are currently making was based upon your average monthly income for the six month period leading up to the filing of your bankruptcy.
You indicate that your husband lost his job in June. Presumably, you have had a loss in income that would affect the calculation that was originally made. A modification of your Plan might be possible to suspend or reduce payments based upon the gap in income.
Another factor is why you were in a Chapter 13. Were you in the Chapter 13 because you made too much money to be in a Chapter 7, or were you at risk of foreclosure or a repossession?
If you needed to be in a bankruptcy to avoid losing your house or your car, you will generally want to get your payments suspended or modified.
If not, you may want to consider a conversion of your case to Chapter 7.
In order to obtain a Hardship Discharge you must show the Bankruptcy Court that you cannot modify your Chapter 13 Plan to make the Plan work.
Assuming a Plan modification will not work, it will be necessary to file a motion with the Court seeking a hardship discharge.
There are a number of requirements to obtain a hardship discharge.
If you don't already have an attorney, get one. This issue is too important to try to do it yourself.
Without knowing the specifics of your case, you will not find the answers you are looking for here.
I highly recommend that you discuss this with your current attorney who would be familiar with your Chapter 13 case. If you do not have an attorney or your attorney is unresponsive, consult with an experienced bankruptcy attorney near you. They will need to familiarize themselves with your filing to see what relief may be available to you.
I do wish you the best.
Steve Doan, Esq
steve@doanlawfirm.com - www.doanlawfirm.com
To reduce a Chapter 13 plan payment would require either for you to motion to amend the payment, or to let the current case get dismissed and file a new case (both options may not end up lowering your payment). You can't keep the car without paying for it.
These are questions for a local bankruptcy attorney. Your question is a good example of why only in many jurisdictions, as low as 1% of Chapter 13 cases that are filed by debtors without an attorney actually receive a discharge.
www.atl-law.com
What will go on at your Chapter 13 meeting will largely depend on whether you have submitted all the required documents to the court & to the trustee. In my state, the trustee asks questions about the property and the budget and then requires documentation for all questionable expenses and appraisals for property values.
Hope this perspective helps!
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