Can medical records impact a bankruptcy filing? 17 Answers as of July 05, 2011

I was recently diagnosed with a medical condition that will make it difficult for me to work and have a steady income in the near future. Can this become an issue in my chapter 13 filing?

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Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
Chapter 13 is also referred to as a wage earner payment plan. If you do not have wages or a steady income, you should be considering a chapter 7.
Answer Applies to: Michigan
Replied: 7/5/2011
Southern California Law Advocates
Southern California Law Advocates | Norma Duenas
If you need to file for Chapter 13 bankruptcy, then it generally requires that you have a consistent, regular income, but this does not mean your income cannot fluctuate prior to or after filing a Chapter 13 bankruptcy. Changes in income when filing can become an issue if it is so inconsistent that it is difficult to determine an average realistic income. For most people their income fluctuates up and down. If you are in a Chapter 13 bankruptcy, and your income changes you can amend your plan to reflect changes income.
Answer Applies to: California
Replied: 6/30/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If your circumstances have changed after filing chapter 13 you can modify (lower) the payment. See your attorney to do this.
Answer Applies to: California
Replied: 6/30/2011
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
Certainly inability to work can frustrate the plan's success. Medical records are not normally requested, however you must indicate on Schedule I increases or decreases reasonably anticipated in the year following filing.
Answer Applies to: California
Replied: 6/30/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
I'm sorry. It will affect any filing. Are you using an attorney? Are you sure you need to file 13 and not 7? In a 13, you need to make regular payments and the case will be dismissed if you don't. In a 7, all current debts are discharged, and you can only file every 8 years. So you're in a tough situation. Good luck.
Answer Applies to: Virginia
Replied: 6/30/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    In a Chapter 13, you must have disposable income to see the plan to the end and in some circumstances, you can get out of the plan early and get a hardship discharge.
    Answer Applies to: Indiana
    Replied: 6/30/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Anything that impacts your ability to make your payments under your Chapter 13 Plan will affect you Bankruptcy, including medical conditions.
    Answer Applies to: New Hampshire
    Replied: 6/29/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    It will impact you if you do not have a steady enough stream of income to pay the Ch 13 trustee each month. Your medical records don't have any bearing, but unfortunately your inability to work may!
    Answer Applies to: Michigan
    Replied: 6/29/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If it affects your ability to make your Chapter 13 plan payments, yes.
    Answer Applies to: California
    Replied: 6/29/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes if you can no longer afford the plan payments.
    Answer Applies to: California
    Replied: 6/29/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    Your medical records are not likely to be reviewed. However, a reasonably stable income is important if you are going to succeed in a Chapter 13 plan. You need to determine how you are going to be able to consistently make the Chapter 13 payments.
    Answer Applies to: Colorado
    Replied: 6/29/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    If you don't make enough to make your mandatory payments in Chapter 13, your case can be dismissed.
    Answer Applies to: California
    Replied: 6/29/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Your ability to make plan payments is an important issue. If you cannot afford the payments because you are unable to work due to a serious, long lasting illness you might be eligible for a Chapter 13 hardship discharge. Discuss it with your attorney.
    Answer Applies to: California
    Replied: 6/29/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    In chapter 13 you need to have the ability to make the payments. If your income goes down you might not be able to cure a home mortgage that is in default, (for example). You might need to modify the payment or convert to Chapter 7.
    Answer Applies to: California
    Replied: 6/29/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Yes. If you anticipate a drop in income, that needs to mentioned in the filing and incorporated into the Chapter 13 plan your lawyer writes, and could be a reason a court would deny confirmation (and may be a reason to do Chapter 7 instead). Something such as this would be a unique situation where a lawyer is even more necessary than in most Chapter 13s.
    Answer Applies to: Georgia
    Replied: 6/29/2011
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