Can I still retire at 66 having two more years of Chapter 13 payments without having to give them more money or do I have to wait? 22 Answers as of July 23, 2014

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Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
Chapter 13 Plan payments are based on four major factors: the value of your non-exempt equity in assets; funding; your disposable income; and the applicable commitment period. If you have passed the applicable commitment period the answer is probably yes. Your attorney should be familiar with your case and will be able to answer your question.
Answer Applies to: Nebraska
Replied: 7/23/2014
Arany & Associates
Arany & Associates | Lawrence C. Arany
The answer depends on what you are trying to accomplish in your chapter 13, and what amount of money, if any, your Means Test calculation requires you to pay your unsecured creditors. This is a question for your BK counsel. My off-the-cuff answer is that you should be able to retire and drop your income "but for" the above requirements. Good luck!
Answer Applies to: Indiana
Replied: 7/16/2014
Stephens Gourley & Bywater | David A. Stephens
That depends on whether your income will decrease or increase when you retire. If it decreases the plan payments should not go up unless the plan provides for them to increase.
Answer Applies to: Nevada
Replied: 7/16/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Retire.
Answer Applies to: Colorado
Replied: 7/16/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
By 'them", do you mean the Chapter 13 trustee? If you fail to complete the payments provided by your confirmed plan, your chapter 13 case will be dismissed. Any goal you may have wished to accomplish by a Chapter 13 will be terminated. It might be possible to convert your case to a Chapter 7 instead if your income is reduced, but this will not help you if you had specific objectives you wanted to accomplish by a Chapter 13. For example, if you were trying to catch up on mortgage arrearages to keep your home, converting probably would not let you accomplish this.
Answer Applies to: Nevada
Replied: 7/16/2014
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    It would be considered a change in circumstances, but voluntary..You may still have to pay the same amount.
    Answer Applies to: New Jersey
    Replied: 7/15/2014
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    If your income changes you may be able to convert your chapter 13 to a chapter 7.
    Answer Applies to: Connecticut
    Replied: 7/15/2014
    214bankruptcy.com
    214bankruptcy.com | Rustin Polk
    In a Chapter 13 case, the amount you have to pay each month is based on a couple of things, one of which is how much money you have coming in each month. So if you retire and no longer have a big paycheck coming in every week, you might qualify to modify your case payments down to a lower level. You'll want to ask your bankruptcy attorney first though, since there could be other factors involved in your case.
    Answer Applies to: Texas
    Replied: 7/15/2014
    Timothy Casey Theisen, P.A. | Tim Theisen
    Your options include converting to chapter 7, modifying the plan to lower the payments, applying for an early discharge, staying the course, or just letting your plan get dismissed and dealing with creditors outside of bankruptcy, where you may have sufficient protection. There are a variety of factors that go into the decision of which choice is best, nobody can tell you which choice is best without reviewing your entire case and spending a bit of time analyzing your situation.
    Answer Applies to: Minnesota
    Replied: 7/15/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    You can retire as long as your retirement allows you to continue making the Ch 13 payments.
    Answer Applies to: Michigan
    Replied: 7/15/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You should be able to retire but you would have to file a motion to reduce your plan payments.
    Answer Applies to: New York
    Replied: 7/15/2014
    EDWARD P RUSSELL | EDWARD P RUSSELL
    If your income drops when you retire you may be able to modify the plan based upon your ability to pay. If you do not modify the plan you pay according to the plan that was confirmed by the court.
    Answer Applies to: Minnesota
    Replied: 7/15/2014
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    You can retire; but the change in your circumstances would be taken into account with respect to your payment. You may be able to convert or lower your payment. You may have to pay more money. It all depends on the terms of your plan and the goals of your 13. Talk to your attorney before making any decisions.
    Answer Applies to: Wisconsin
    Replied: 7/15/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    I do not know enough about your case to answer that. I don't know what your plan payment is now nor do I do know what the retirement income will be compared to your current income. I don't know if your trustee files motions for modifications. You need to see local counsel, sorry.
    Answer Applies to: California
    Replied: 7/15/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    There are too many factors to consider to answer your question accurately. You must complete your plan in order to get your discharge, but "completing the plan" may mean different things depending on the facts. You are free to retire whenever you need to, but you must continue to make your plan payments unless and until the court allows you to adjust the payment with a modified plan. The procedures for modifying plans vary greatly from one court to another, but it is hardly ever a simple process. You are also free to dismiss your case at any time, but you will not get your debts discharged if your case is dismissed.
    Answer Applies to: Oregon
    Replied: 7/15/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    If you're asking whether you will have to increase your Chapter 13 plan payment if you retire and start receiving an amount that would allow you to pay more, the answer depends on what kind of money you get. If you only get Social Security benefits, you cannot be forced to increase your plan payment. If your money is from a pension, you may have to increase your plan payments when you report your income, but that is only prospective. In other words, if you retire today and start receiving the greater amount now, depending on your district or the order confirming your Chapter 13 plan, the Trustee may not know your income has increased until after you submit your tax returns next year. In that scenario, you would have to increase only the plan payments from that point forward.
    Answer Applies to: California
    Replied: 7/15/2014
    Law Office of Peter M. Lively
    Law Office of Peter M. Lively | Peter M. Lively
    It depends upon your reason for retiring and your judge. You may be able to modify your plan to reduce the payments or obtain a hardship discharge. You should consult with a bankruptcy attorney regarding your options given all of your facts and circumstances.
    Answer Applies to: California
    Replied: 7/15/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    All your disposable income should be paid into the plan, so if by retiring that means you'll have to pay in more to your plan then I recommend you do not retire yet.
    Answer Applies to: Nevada
    Replied: 7/15/2014
    LAW OFFICE OF RALPH L. WILLIAMS
    LAW OFFICE OF RALPH L. WILLIAMS | RALPH L. WILLIAMS
    Your approved Chapter 13 bankruptcy plan would require you to pay the amount provided until completion. If your income decreases you may be able to file a motion to modify the payment amount. You need to check with your bankruptcy attorney to determine if your plan could be modified to decrease plan payments for remaining period.
    Answer Applies to: California
    Replied: 7/15/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You need to speak with your lawyer. The answer will depend upon how long you have been in your chapter 13 and what it is that you are trying to accomplish in your plan. Chapter 13 payments are not voluntary in nature if you expect to receive a discharge of your debt. It might be possible to modify your plan if your income changes, BUT it might not be an option for you under your particular circumstances. Contact your lawyer before making any changes in employment or income!
    Answer Applies to: Colorado
    Replied: 7/15/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    You can retire when you are financially able to do so.
    Answer Applies to: South Carolina
    Replied: 7/15/2014
    Law Office of Melissa Botting | Melissa Botting
    You may be able to convert to a 7 if you retire and have lower income. If you retire and stop making your payments you may lose your discharge and all of your debts may come back with all of the interest that would have accrued if you had not filed bankruptcy.
    Answer Applies to: Texas
    Replied: 7/15/2014
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