What to do if I entered Chapter 13 last year but haven’t be able to keep up with my payments?

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What to do if I entered Chapter 13 last year but haven’t be able to keep up with my payments?

I asked my lawyer for a reduction but she hasn’t come up with a substantial one (only $200 less over $1350 I pay monthly). I’m currently 3 months behind. Is a short sale still an option for me?

Asked on January 3, 2013 under Bankruptcy Law, Virginia

Answers:

Darren Delafield / Darren Delafield

Answered 8 years ago | Contributor

There are multiple factors which influence the amount of your chapter 13 payment. Some of those factors are (1) your income, (2) the value of your home, (3) overdue house payments, (4) your car payment, (5) taxes, (6) the amount of credit card debt, (7) co-debtors, (8) student loans, (9) your goals, etc. If you change a goal, like keeping your home, you may be able to alter your payment. This assumes your income has changed or you have new long term expenses.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you cannot maintain the reorganization schedule per your Chapter 13 bankruptcy then you need to see if your creditors will be willing to modify your payments with them voluntarily on a monthly basis. A short sale is still an option for you concerning your home. I suggest that you may want to consult with a real estate attorney further about your matter.


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