Most Debtors don’t have a drastic increase in income from the time their plan is confirmed and the time they need to file a motion to incur debt. However, there is the occasion when the income has increased. Our office had to deal with such a Debtor today. When the plan was confirmed the Husband was only receiving unemployment. Since that time, Wife has gotten a raise and Husband is now working making a great deal more then he was on unemployment. The trustee now has the right to go back and adjust payments according to the current income of the Debtors.
If we filed the Amended schedules, Debtors trustee payment would go up around $700 a month. Before we would file paperwork that would affect the payment in such a drastic way, our office will try and talk to the Debtor and give them all their options. This allows the Debtors the opportunity to decide what is best for them. For our Debtors, it would probably be best for them to get current and stay current on the car they are driving instead of surrendering it and getting a car with a lower payment.
Many people who go through the process of a Chapter 13 do not realize that they can refinance their home. There are a variety of reasons why people would want to file their home. One main reason is because there is no protection on the home any longer and they have not been able to work out any type of arrangement with the mortgage company. The most difficult thing to find is going to be someone that will be willing to work with you to get the house refinanced. Refinancing is possible, but just like buying a home or a car, you will have to find the right people. Don’t get your hopes up too quick, because you will be able to find someone that will help.
Once you have someone that will help you and get the house refinanced, then you will need to contact your attorney’s office to find out what the next steps are. In the Fort Worth Division, the trustee will allow us to provide a good faith estimate and they will provide a letter to us stating that they do not have any objection to you refinancing. It may be different in other districts and divisions, so it is very important to check with your attorney’s office. Other districts may have you file a motion to incur this new debt and there will be attorney fees associated with it. Once you have everything that you need, you will be able to close and start fresh with your new mortgage company.
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