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“The only constant in life is change.”-Heraclitus, 5th century B.C.

With regard to your personal bankruptcy, change most often comes in two forms:

  1. Conversion from a Chapter 13 to Chapter 7 (or the other way around)
  2. Modification of the Chapter 13 Plan

Section 1307 of the Bankruptcy Code governs bankruptcy conversions.  A debtor might convert a Chapter 13 to a Chapter 7 if he is unable to make the Plan payments.  A debtor might convert a Chapter 7 to a Chapter 13 if the debtor decides to keep secured property (such as a house) that he had previously planned to surrender.  Your situation may be similar.  Although there may be some qualifications to meet and some paperwork to file, a conversion may generally be done at any time and for any reason.

Another, and less radical, change is the plan modification.  Three to five years can be a long time, and many income changes can occur (overtime loss, job change, pay cut, etc.).  In that instance the debtor may file a motion to modify plan payments.  The motion is likely to succeed if there is a compelling reason to alter the monthly payments and only unsecured creditors are affected.

The Complete Bankruptcy

When you buy a new suit, you may need to hem up the pants.  When you file bankruptcy, you made need to change the paperwork.  At Henley and Henley, we are not just interested in selling you a pair of pants.  We are interested in your total financial future, and we will be there to help you all the way.  Call today for your free consultation.