If you filed for bankruptcy in New York, you may be wondering if you can move during your Chapter 13 bankruptcy plan. Different states handle bankruptcy in different ways, which is why this is something you should understand before you relocate so that you know exactly what to expect.
At Grady BK, PLLC, we understand just how confusing and overwhelming the bankruptcy process can be if you’ve never filed for bankruptcy before. That is why our goal is to provide the utmost clarity so that you can move forward with confidence and peace of mind. In this article, we will discuss what happens if you move during Chapter 13 bankruptcy and whether or not you can transfer your bankruptcy case to another state.
Do You Need to Notify the Court or Trustee?
If you’re planning on relocating during bankruptcy in New York, there are some requirements you need to be aware of. The good news is that you have the freedom to move as you please during the course of your Chapter 13 repayment plan.
The main thing you need to do if you plan on moving during Chapter 13 bankruptcy is to notify your bankruptcy attorney. You should do this as soon as you can, since the court and your trustee will need to be given your updated address information. If this isn’t updated in a timely fashion, you could miss important legal notices or information about your plan.
Also, relocating doesn’t necessarily mean you should stop communicating with your bankruptcy attorney in New York. Your attorney will continue to work on your case and can help you navigate any issues that may arise.
Can You Transfer Your Case to Another District?
Another thing to understand if you are moving during bankruptcy is that your case will remain in the original court that approved the bankruptcy. This means that the same court will oversee your case until your repayment plan has been completed. Jurisdiction will remain the same as well.
You do not transfer your case to another district or state. Your bankruptcy case will remain in the original court no matter where to move to.
What If Your Income or Expenses Change?
Different locations come with different living expenses, which can impact your ability to maintain your Chapter 13 repayment plan. Pair that with potential changes in income, and you may need to request a modification.
Before you officially move, you should already have an idea of what your income and expenses will be in the new city or state. You can then speak with your attorney about your new budget and what that will mean for your bankruptcy. If you don’t plan ahead, you may not be able to keep up on your repayment plan, which could result in your case being dismissed.
Tips for a Smooth Transition During Chapter 13
Although you have every right to move during your Chapter 13 bankruptcy plan, there are still certain steps you should take. Understanding the requirements can help this process go smoothly so that you don’t run into any issues with your plan.
Here are some tips to help you prepare and keep up on your repayment plan as you are moving cities:
- Budget: Before moving, you need to determine what your new income will be, as well as your new living expenses. Make sure you do research into the standard cost of living in your new location so that you can create an accurate budget.
- Notify bankruptcy parties: You’re legally obligated to notify the court and your trustee when you move. Make sure you provide your updated address to your bankruptcy attorney so that you don’t miss important notices
- Maintain payments: Moving can be expensive, which is why you need to take the necessary steps to ensure you maintain your monthly payments. Even missing one Chapter 13 payment can increase the risk of having your case dismissed.
- Request a modification: If you have any reason to believe that your income will go down or your living expenses will go up, you need to request a payment modification (if possible). Discussing this with your attorney in advance can help you better prepare financially so that you don’t fall behind on your monthly payments.
FAQ:
Can I move out of state during Chapter 13?
Yes, you are free to come and go as you please, even if you are still paying on your Chapter 13 plan. However, you need to notify your attorney about the move.
Will my payment amount change if I move?
Only if you request a modification to your repayment plan. In many cases, the court will approve this if the move will result in a change in income or expenses.
New York’s Top Compassionate Bankruptcy Attorney
After filing for Chapter 13 bankruptcy, you may decide that you want to move to another city, but don’t know if this is allowed. At Grady BK, PLLC, our bankruptcy lawyers can work with you one-on-one to understand how bankruptcy affects your ability to relocate. We prioritize each and every one of our clients, ensuring they get the personalized assistance they need.
At Grady BK, PLLC, we aren’t just here to help you file for bankruptcy; we are here in case you need us throughout every step of the bankruptcy process. This includes whether you are evaluating your options, are ready to file, or are navigating your Chapter 13 repayment plan.
Contact us today at 315-299-9005 to discuss your situation with a bankruptcy attorney. Our team at Grady BK, PLLC, is here to help you understand what you can and cannot do during your Chapter 13 plan.
