One of the intimidating parts of a chapter 13 bankruptcy is the plan of repayment, which can be anywhere from three (3) to five (5) years long, depending on your circumstances.  If you are considering filing this type of bankruptcy, you might fear that you are locking into something now that they might not be able to afford in a year or two.

Things can happen in that period of time.  You might experience a job loss, disability, increase in expenses, and the like.  However, oftentimes there is a solution that will keep you on track to your fresh start.  That solution is a plan modification.

In most cases you can lower the monthly payment (either outright or by extending the plan term) and get back on track.  You do this by applying to the bankruptcy court for a modification.  If you are in a situation where you cannot make a payment for a few months, but can resume down the road, you might also be able to apply for a suspension of payments.

The important thing to remember is that these plans are often not written in stone and can be revised as circumstances change. If you live in South Jersey and are considering filing a chapter 13 bankruptcy, please feel free to call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.


Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.