Who Is Eligible to Apply for Lower Bankruptcy Payments?

An individual who has the ability and disposable income for bankruptcy payments can file for bankruptcy under Chapter 13. After filing for bankruptcy under chapter 13, you will have to make bankruptcy payments continuously. Throughout the entire process of bankruptcy, one has to maintain a continuous pay back. Failure of which may lead to more legal proceedings or fines. Bankruptcy trustee is responsible for managing the estate and payment issues.

Lower Bankruptcy Payments

In chapter 13 bankruptcy cases, you will have to stick to the payment plan you agreed while filing. However, whenever you find it difficult to stick to the payment schedule, it is possible for you to lower the bankruptcy payments by petitioning to the court. You can lower bankruptcy payments through trustee by submitting documents like pay stubs, bills, receipts, bank statements and other documents. These documents can support your reasoning for lowering the bankruptcy payment. When you are found eligible, your bankruptcy payment will get reduced by extending the payback period or debts might be discharged (based on the situation).

Eligibility for Lowering Bankruptcy Payment

If you have filed bankruptcy under Chapter 13, then you are eligible for lowering bankruptcy payment provided if --

• Your income should pass the means and median test.
• Your basic living expenses have increased due to the increase in family size.
• Your disposable income is reduced considerably for the past three months due to unforeseen expenses or reduced income.
• Your current disposable income is not sufficient to stick to the previously agreed payment plan.
• Your sources of income are affected by a changed circumstance like illness, unemployment, death of your spouse or divorce.
• You have faced new financial turmoil damaging your income possibilities.
• You have an auto loan whose value can be crammed down under new rules and regulations.

Getting Legal Assistance

Petitioning for lower bankruptcy payment is not a task that is too simple. State to state, the bankruptcy laws differ and whether your state allows for lowering bankruptcy payment itself is not known. So, in such compelling circumstances of financial crisis, you will have to take the assistance of an attorney who is experienced in obtaining the desired result for you. Legal advices you get from such an experienced person will help you in determining your eligibility for lowering the bankruptcy payments.