What to do about an increase in a Chapter 13 re-payment plan?

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What to do about an increase in a Chapter 13 re-payment plan?

I have been making payments for 2 years. Now, prior to confirmation, I am told my payment will now be increased by about $1200 per month over the $400 per month I have been paying. I own a retail business and am told the increase is due to the valuation of my inventory at the time of filing. This large increase is something I do not think I will be able to pay with the income I have. Do I have a way to get this reduced?

Asked on October 30, 2012 under Bankruptcy Law, Arizona

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you cannot afford the increase in the monthly payments under the Chapter 13 plan that you have written about then you need to speak with the bankruptcy trustee about your concerns and see what can be done. If the trustee refuses to accomodate your request then you need to file a petition with the court opposing the increase in the payment plan from $400 monthly to $1,200 monthly.


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