What to do when chapter 13 payments seem unaffordable

Understanding Chapter 13 Bankruptcy Payments

Chapter 13 bankruptcy is a form of debt reorganization that allows individuals to pay back their debts over a given period, typically three to five years. This arrangement is designed to help individuals get back on their feet financially by providing a manageable payment plan. However, there may be instances where the set payments may seem too high and unaffordable.

When Chapter 13 Payments Become Unaffordable

Various factors can make your Chapter 13 payments feel too high. These could be sudden financial changes such as job loss, medical emergencies, or unforeseen expenses. In such cases, keeping up with the payment plan can become a significant challenge.

Assessing Your Financial Situation

Firstly, if you find yourself struggling to make your Chapter 13 payments, it’s crucial to assess your financial situation. Identify the cause of your financial strain and try to determine if it’s temporary or likely to continue for the foreseeable future.

Discussing with Your Bankruptcy Attorney

Upon understanding your financial situation, consult with a nearby bankruptcy attorney. They can provide guidance on possible options that might be available to you. This consultation is crucial as it may lead to potential solutions to your financial strain.

Possible Options for Unaffordable Payments

There are a few possible options for handling unaffordable Chapter 13 payments. These include modifying your Chapter 13 plan, converting your bankruptcy to Chapter 7, or in some cases, seeking a hardship discharge. Your attorney can guide you through these options and help identify the most suitable solution for your situation.

Contacting the Liviakis Law Firm

If you’re facing unaffordable Chapter 13 payments, don’t hesitate to reach out to the Liviakis Law Firm at 916 459 2364. Our team of knowledgeable attorneys is ready to provide you with the guidance and assistance you need during this challenging time. Remember, you don’t have to face these financial difficulties alone.