what is the highest percentage of my pay can they with hold from my check in a chapter 13 bankruptcy

I filed a chapter 13 in Ga. have since moved to Mo. lost my job for 5 months and just started back to work. My soon to be ex-wife had to go to a hearing on our bankruptcy and they increased our payments witch due to the fact that I make less money now comes out to be 61% of my income is this allowed and leagle?

Asked on June 25, 2009 under Bankruptcy Law, Missouri


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If for some reason you can't keep up the payments as established pursuant to your Chapter 13,  you can make application to the bankruptcy court to modify your repayment plan based on hardship.  In your case, your 5 month layoff from work.

If for some reason the bankruptcy court won't let you modify your plan, you might be able to convert to a Chapter 7 bankruptcy and have your debts discharged outright.  In lieu of that, you can move to have the bankruptcy court dismiss your Chapter 13 thus ending the onerous obligations brought on by the plan.   However, you would still owe your debts, plus any interest creditors did not charge while your case was pending.  Basically, you would be back where you were prior to filing. 

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