In a Chapter 13 personal reorganization
, you have an ongoing plan payment which usually is made whenever you receive a paycheck. This payment is determined by a number of factors, the primary one being your disposable income. The payment can also be determined by the amount of debt you owe and the type of debt you owe. During the course of your plan, your payments can change. However, if you hire an experienced attorney and properly disclose your income
, and amount owed to creditors, it will be a small change, if any.
Unsure of Debt to Creditors
One instance in which your payment may change is upon confirmation. At the beginning of your case, a Proposed Chapter 13 Plan is filed. If you properly disclosed the required information to your attorney, the Court may confirm your plan as filed. However, if you were not sure how much was owed to creditors being paid through your plan, the payment may increase at this time. For example: if you believed that you only owed $15,000 for your vehicle, but in reality owed $20,000, your plan payment will probably increase upon confirmation once this amount is corrected.
Change in Income