A Chapter 13 Bankruptcy can last anywhere from three to five years, and a lot can change in a debtor’s circumstances during that period of time.  Some of the most common changes in circumstances that debtors run into are listed below:

1.  Change in Income.  Over the course of three to five years, it is very likely that you will experience a change of income.  You may change jobs, get a promotion, or even lose your job when you previously had one.  When you experience any change of income, you need to let your attorney know, regardless of if it is a pay increase or a pay decrease.  Depending on the circumstances, your attorney may need to advise that you amend certain schedules and/or amend your Chapter 13 repayment plan.  With dramatic pay increases, you may need to start making larger plan payments each month.

2.  You receive a large, lump sum of money.  There are a variety of reasons why you would receive a large, lump sum of money, including being entitled to receive an inheritance, proceeds from a lawsuit settlement,  or even from cashing out a 401K.  Generally speaking, if you receive a large sum of money at any time during your Chapter 13 case for any reason, you will have to turn it over to your trustee so it can be distributed to your creditors.  If you receive a lump sum of money for any reason, you should contact your attorney. 

3. You need to replace a vehicle.  Over the course of five years, it is very possible that your vehicle may break down, or need to be replaced.  If getting a new vehicle is an absolute necessity, you should speak with your attorney before you purchase the car.  Depending on the situation, your attorney may need to take certain action to assist you with this process.  As an example, if you want to purchase a new vehicle by financing it, your attorney will have to file a motion to incur debt.  This means that you will have to show that you are able to afford paying for a new car as well as your ongoing Chapter 13 plan payments.  If you were planning on purchasing a vehicle outright, you may need to explain where you got the funds to do so.  Additionally, if your previous car was being paid through your Chapter 13 plan, your attorney may need to amend your plan to reflect any changes that are going to be made.

There are many ways that your circumstances can change throughout the length of your Chapter 13 bankruptcy.  If your income changes, or you need to purchase new property, contact your St. Louis Bankruptcy attorney as soon as possible.