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Can I Make Changes To A New Jersey Bankruptcy After The Filing?

New Jersey Lawyer Explains Bankruptcy Modifications After Filing

The chapter 7 process in New Jersey lasts about 4 months. After approximately 4 months, the debtor is completely out of the bankruptcy case with an order eliminating certain debt. No payments are required like a chapter 13 case. Typically, there is no need to make any changes in a chapter 7, other than correcting information or the bankruptcy schedules.

A chapter 13 is very flexible and may be modified for numerous reasons. A chapter 13 requires monthly payments to the trustee for 36 to 60 months. The number of months of the plan depends on numerous factors. The amount of the monthly payment depends on: the type of debt; the plan’s goal; the debtor’s disposable income; and the debtor’s assets. A plan may be modified by filing a modified plan with the court. The debtor is required to pay no less than the debtor’s disposable income. In limited circumstances, the monthly payment may be modified, if the debtor’s household income is reduced. At the filing of a modified plan, the trustee requires updated proof of income.

A list of possible chapter 13 plan modifications are listed below. A debtor may wish to modify their plan to surrender a house, or auto, and eliminate the mortgage or auto finance debt. A debtor may wish to purchase a car or house, during the plan. Someone could modify their plan to remove the mortgage payments arrears, after a loan modification is consummated. The plan could be modified to reject any type of lease, including a rental or auto lease. There are numerous reasons for modifying a bankruptcy plan in New Jersey.

Robert Manchel, may be contacted at (866) 503-5655, to discuss your New Jersey bankruptcy options.

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