How to Lower Your Bankruptcy Payments

If you have a pending Chapter 13 bankruptcy case you may have reached a juncture at which you are having difficulties in making your monthly plan payment. If that is the case, you may desire to lower your bankruptcy payments.

Things You'll Need

• Paycheck stubs for the past three months
• Statements or receipts for necessary expenditures for the past three months

Instructions

1. Organize your paycheck stubs for the past three months in order to document your income.

2. Gather together statements and receipts associated with your necessary expenditures for the past three months.

3. Compare your income with your necessary expenditures with the goal of demonstrating to the bankruptcy trustee and the court that you do not have the disposable funds necessary to maintain the current plan payment.

4. Provide your documentation to the bankruptcy trustee. In many instances it is possible to obtain permission to lower bankruptcy payments from the trustee without appearing before a judge.

5. Prepare and file a motion with the court if the bankruptcy trustee does not approve the reduction of your bankruptcy payments.

6. Appear at the hearing on your motion and present the evidence previously gathered in support of your desire to lower bankruptcy payments.

Tips & Warnings

• Bankruptcy cases are complicated matters, including seeking to lower your bankruptcy payments. You should consider seriously retaining the services of an experienced attorney to assist you with your bankruptcy case and related issues.

References

• Cornell Law School, Bankruptcy: An Overview
• U.S. Bankruptcy Code
• U.S. Bankruptcy Courts, Local Rules

Resources

• American Bar Association, Section of Bankruptcy and Insolvency Litigation