We are in a Chapter 13 Wage Earner Plan. It is extremely hard making the payments because there is not enough income left to pay necessary living expenses. If an emergency were to come up with the house or car, etc., we don’t have any extra. We don’t even have enough to pay now. Is there anything we can do?
You have two main options. First, you could attempt to reduce your expenses or increase your income to allow you to continue making the payments. Second, if you are unable to make the payments, the Chapter 13 plan will fall into default, and your creditors may then be able to pursue you. It may be possible to file Chapter 7 bankruptcy depending on your situation. This is a complicated area, so we suggest you you contact a bankruptcy attorney to fully review your options.