When filing Chapter 13 bankruptcy, debtors work with their bankruptcy trustees to devise a realistic repayment plan that will theoretically allow them to repay their debts within three to five years of filing. However, a lot can change after a Chapter 13 bankruptcy plan has been approved and is in place, and debtors may have to work with their trustees to alter this plan in order to reflect changes to their income and/or debt. The following are some of the most common circumstances that prompt debtors to need to alter their Chapter 13 bankruptcy plans:
- Debtors lose their jobs – Whether a debtor has been laid off or fired from his job, the resulting loss of income coupled with the fact that the individual likely doesn’t know when he will have a steady source of income again can be legitimate grounds to petition for changes to one’s Chapter 13 bankruptcy plan. Depending on the debtor’s circumstances, the trustee may try to extend the repayment plant to give an out-of-work debtor more time to repay his outstanding debts.
- Debtors become seriously injured or sick – Severe injuries or illnesses typically result in expensive medical bills, which can put a debtor in both a new financial crisis as well as a health crisis. A bankruptcy trustee will generally handle such cases in the same as job losses are handled because, in both circumstances, the debtor will have a loss of income that will likely prevent him from abiding by the previously agreed upon Chapter 13 bankruptcy plan.
If you are facing foreclosure, are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.