Employment situations can change from one day to the next. You might be happily employed, only to be let go in a round of layoffs. On the other hand, if you're unemployed and looking for work, a job offer could come at any time.

If you've filed for Chapter 13 bankruptcy, though, a change in employment can put your filing at risk. An increase in income could leave you able to make higher payments, but a drop in income can make even a reasonable repayment plan unachievable. Whether you filed two days ago or two years ago, you'll need to inform the court of any employment changes.

The Craig Black Law Firm specializes in bankruptcy filings and knows that things can change after filing. If you have questions about Chapter 13 bankruptcy, give us a call at 678-888-1778 or complete this confidential contact form.

Payment Plans in Chapter 13

Chapter 13 lets you repay your debts on a payment plan set up by the court. This plan is based on your debts and income as disclosed at the time of filing. When that income changes, it can directly impact the amount you're able to pay each month.

The following employment changes have a direct impact on your ability to pay and, therefore, should be reported to the court:

• Raises and promotions that increase your income
• New employment
• Loss of employment
• Reduction in pay
• Health issues that impact your ability to earn a living
• Loss of medical insurance

Handling Employment Changes

Your first contact for any questions about your bankruptcy should be your attorney. If you don't have one, you'll need to reach out to your trustee directly. The trustee will want documentation that shows the change, including pay stubs, job offer letters, or termination notices.

A modification starts with a petition to the court to modify your Chapter 13 plan. You'll need to explain the reason you're requesting a modification and attach proof of the change in your circumstances. You may be required to attend a hearing to discuss the modification request in person.

In the case of a severe drop in income, it might make sense to convert your Chapter 13 bankruptcy to Chapter 7. This will eliminate the repayment plan, letting you move forward without a hefty monthly payment hanging over you.

Personalized Legal Help for Your Bankruptcy

Even if you initially filed for bankruptcy on your own, issues like bankruptcy modifications can be easier when you have an attorney guiding you through them. At the Craig Black Law Firm, I work directly with each client, personalizing my approach. Whether we're converting a Chapter 13 bankruptcy or petitioning to adjust the repayment plan, I have the experience necessary to work with you through the process.

Whether you're considering bankruptcy or you need help with an existing bankruptcy case, I can help. Contact me at the Craig Black Law Firm by calling 678-888-1778 or completing this form.