Modification to close out Bankruptcy
There are many scenarios that may allow you to request a plan modification for close and discharge case without further payments due. The first being that your case was filed prior to 10/17/2007 and you have been in your bankruptcy for at least 36 months.
If you have surrendered a home, vehicle or both and there is not other secured debt scheduled in bankruptcy then you may qualify for early discharge by filing plan modification. You are required to pay your disposable income for 36 months so you may need to provide updated pay stubs and expenses to your attorney for review to ensure you qualify for this option.
Furthermore, you may be in 100% plan to your unsecured creditors and only had a few file a proof of claim. This would allow your plan term to be decrease or your plan payment be reduced based on the claims filed. Your bankruptcy plan will rarely remain consistent with your preliminary plan since the claims filed will not be exact amounts listed and you can’t anticipate which unsecured creditors will file a proof of claim.
Keeping in close contact with your attorney office will allow better management of your bankruptcy case. Your attorney’s office is only alerted to review your case after confirmation if a motion has been filed or debtor contact is made.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
