“I live with my elderly father and I’m filing Chapter 13. My payment leaves no room to pay rent if he passes away and I need to move in the next five years. What can I do?”
This is a very thoughtful — and very common — concern.
When someone files Chapter 13 while living with a parent or family member, the current budget may not include rent or full housing costs. But life changes. If your housing situation changes during the 3–5 year repayment plan, you are not stuck.
Here’s what you should know.
First: Chapter 13 Plans Can Be Modified
A Chapter 13 plan is based on your current financial situation at the time of filing.
If circumstances change — including:
- Loss of housing
- Death of a household member
- Increased rent or living expenses
- Job changes
- Medical issues
You can file a motion to modify the plan.
The Bankruptcy Code allows adjustments when there is a substantial and legitimate change in circumstances.
What Happens If You Need to Move?
If your father passes away and you need to obtain housing:
- Your budget would change.
Rent, utilities, and other housing costs would be added. - Your disposable income would likely decrease.
That could justify lowering your Chapter 13 payment. - Your attorney can seek a modification.
The court may reduce payments, extend the term (up to 60 months total), or adjust the distribution to creditors.
The key is that Chapter 13 is designed to be flexible when life happens.
Could the Case Be Converted?
In some situations, you may also have the option to:
- Convert your case to Chapter 7 (if eligible), or
- Seek other restructuring relief
This depends on income, assets, and how far along you are in the plan.
What Should You Do Now?
If you’re filing while living rent-free or with reduced expenses:
- Be realistic about future housing needs.
- Discuss potential changes with your attorney upfront.
- Consider building a small emergency cushion if possible.
Planning ahead is wise — but don’t let “what if” fears prevent you from getting relief now.
Important: Don’t Wait to Address Changes
If your circumstances change during your Chapter 13:
- Do not stop paying without speaking to your attorney.
- Do not assume you’re stuck.
- Act quickly to modify the plan.
Courts are generally understanding when changes are genuine and documented.
The Bottom Line
Chapter 13 is not meant to trap you in a payment that no longer fits your life. If your housing situation changes in the next five years, there are legal mechanisms to adjust your plan.
If you are considering Chapter 13 and have concerns about future housing, it’s important to speak with experienced counsel who can help structure a plan that accounts for both your current reality and possible future changes.
Life happens. Bankruptcy law anticipates that — and provides tools to adapt.
