The coronavirus, commonly known as COVID-19, has changed our world in many ways. If you are visiting this webpage, it is likely COVID-19 has changed the way you have made and continue to make your monthly Chapter 13 plan payments. As you may be aware, the Chapter 13 Trustee’s office has been closed to the public for the past several months and has been working with folks as much as possible to ensure success within their Chapter 13 bankruptcy plans.

However, we know no grace period lasts forever and you are likely eager to have a plan for the remainder of your Chapter 13 bankruptcy. Due to the passage of the CARES Act, one of those options includes a Motion to Modify to Extend the Plan. This can effectively stretch out the current length of your Plan (which is likely 60 months) to up to 84 months. Please keep in mind your Plan may not be stretched out for this long; it depends on your individual financial situation. This extension of your Plan’s length can help you address the Plan payments you have missed and give you time to return to your regular Plan payment without being several months behind and having to make an increased Plan payment to address the problems all at once.

In order to get started on your Motion to Modify, we will need a few things from you:

First, we will need a synopsis of what your situation was during COVID-19. In other words, were you furloughed or laid off? Did you receive unemployment benefits? Were you working reduced hours? How long did this change in your income take place?

Second, what is your financial situation now? Are you back at work with regular hours? Are you working reduced hours? Are you out of work and trying to find a job?  In any case, we will need 60 days of records for your household income. This may include pay stubs, unemployment benefits letter, or other types of income.

Third, please let us know how many Chapter 13 Plan payments you missed and what you anticipate being able to make for the upcoming months. For example, you may have missed two Plan payments and now have returned to work. Therefore, you may only need to extend your Plan three or four months to get caught up.

Lastly, please fill out the expenses sheet linked here. This will give us an idea of what your expenses look like going forward. If your income has changed, it is likely your expenses may have changed as well!

Once we have this information in hand, we will be able to start the process of preparing a Motion to Modify. Please keep in mind, any Motion will take 4-6 weeks to prepare, file, and have heard in Court. Therefore, if know you have an upcoming dismissal hearing or will continue to miss Plan payments, it is important to get the ball rolling as soon as possible.