Can my Chapter 13 Plan Payment be Increased After the Plan is Confirmed

Posted by Kevin Ryan | Aug 12, 2016 | 0 Comments

Changes In Disposable Income 

The answer to this question is "yes," your Chapter 13 Plan payment can be increased after the Plan is confirmed.  When you file a Chapter 13 bankruptcy case, your wages and all other income are under the jurisdiction of the United States Bankruptcy Court.  When your Chapter 13 case is filed, an Estate is opened up which consists of all of the Debtor's property, including wages and income.    An increase in income during the administration of the Chapter 13 case can create a situation where there is more disposable income available to pay general unsecured creditors.   If the Chapter 13 Trustee, or in rare instances a creditor, files a motion to increase the plan payment with the Court based upon an increase in debtor income, then in that instance the Debtor will have to consider preparing and filing an Amended Schedule I and J to show any new expenses and deductions from wages that correspond to the higher income.  

New Property Received by the Debtor 

In addition to a change in income after confirmation of the Plan, the debtor may receive new property during the administration of the Chapter 13 case.   An inheritance of money, lottery winnings, sale of a home, car or other asset ( with the required Court approval)  can result in more money being available post-confirmation to pay more to creditors.   

Review Schedules I and J 

The key to any increase in income or property after your Chapter 13 Plan is filed is to contact your bankruptcy attorney to make the necessary adjustments to your household budget on Schedules I and J.   In many Chapter 13 cases the household expenses are kept to a bare minimum to show that the Debtor has enough funds to make the lowest possible Chapter 13 Plan payment permitted under the circumstances.  In these cases, the general unsecured creditors initially receive just a small percentage of what they are owed.   When the debtor later receives an increase in income, or new property into the Estate, then the new monies need to be applied to necessary household expenses that have arisen.  An increase in household expenses can be the result of higher insurance costs, post-filing income tax bills, post-filing medical bills, post-filing attorney fees,  a higher amount owed to a creditor based upon a post-filing and timely filed Proof of Claim, etc.   

If you have questions about whether your Chapter 13 Plan payment can or will be increased, or general questions about Chapter 13 bankruptcy...  Call me. I'll BE there for you.  

About the Author

Kevin Ryan

"I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. And I'll make them go away."  -Kevin Ryan, Attorney at Law Kevin Ryan is a graduate of the College of Wooster and the Cleveland Marshall College of Law. He is admitted to practice before all Alabama State Courts, the United States District Court for the Southern District of Alabama, and the United States Bankruptcy Court for the Southern District of Alabama. The United States Bankruptcy Court is a part of the United States District Court. Since 1998, Mr. Ryan has represented thousands of individual clients in bankruptcy, criminal, divorce, probate, personal injury, and real estate matters.  Attorney Ryan is also a licensed real estate agent in Alabama.  He handles  Bank-owned properties, short sales, and conventional sales in addition to conventional real estate listings.   This wide range of experience enables Attorney Ryan to take a wider look at your legal matter. It is important to consult with an attorney who can see from experience how other legal issues may affect your situation, and advise you accordingly. Personal Info Kevin Ryan is a member of First Baptist Church in Silverhill, Alabama. He resides in Silverhill with his wife Jessica and their three children. Committed to helping our Clients achieve a fresh financial start Our practice focuses primarily on consumer bankruptcy matters under Chapter 7 and Chapter 13 of the United States Bankruptcy Code.  Our law practice also includes matters where bankruptcy litigation, appellate work, or involvement in civil lawsuits is needed by a client.     No representation is made that the quality of any of these legal services is of higher quality than another attorney or law firm.   The United States Bankruptcy Code requires the following notice:  We are a Debt Relief Agency, which means we help people get legal relief from their Debts through the bankruptcy process. Interested in learning more about our bankruptcy attorney near Mobile, Alabama? Contact Us for help with chapter 7 bankruptcy or chapter 13 bankruptcy in Mobile, Baldwin and Washington counties. Education Juris Doctor, Cleveland Marshall College of Law, 1997 Employed full time as a paralegal while attending law school in the evenings. B.A., The College of Wooster, 1994 NCAA Div.III All Conference (N.C.A.C.) Football Team : Defense 1993; Most Inspirational Senior Award 1993; Co-captain 1993; Letterman 1991-1993; Phi Sigma Alapha Fraternity 1991-1994; Athletic Director Jurisdictions Admitted to Practice Alabama

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I'll BE there for you.

I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. - Kevin Ryan, Attorney at Law

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