i can’t make my payment

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i can’t make my payment

we are currently in a ch. 13 for about 1 1/2 yrs… we can not keep making the payment… we are struggling financially to make ends meet.. this is the main reason we decidd to go with bankruptcy.. now were in same boat.. is there anything we can do to lower payment or get a hardship granted? thank you

Asked on March 24, 2009 under Bankruptcy Law, Indiana

Answers:

S.B.A., Member, California and Texas Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You can talk to your BK atty or the Bk Trustee, but the common solution is to switch your Bankruptcy from a Ch 13 to a Chapter 7.

There must have been a reason you filed a Ch 13 (wage earner's bk) rather than a Ch 7 (complete insolvency bk). Was there a house at issue, or were you trying to retain some other assets ?

If you filed a Ch 13 because you didn't meet the requirements of a means test (salary too high) or your debt was considered managable, then ...you need to go over your budget with someone with expertise in the budgeting area.

A Ch 13 shouldn't have been approved unless it was possible for you to make the payments. Possibly you are using your money in an inappropriate manner and can use help in setting up a strict budget with which you can comply. If it's not your budgeting, but because your debts have increased since the Ch 13 plan was implemented, then maybe a Ch 7 is the correct solution.

Identify the reason you can't keep up the payments and, either increase your ability to budget or contact your Bk attorney to change the Chapter 13 to a Chapter 7.


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