I filed chapter 13 three years ago and have been making all my plan payments. I was recently told that I was being laid off from my part time job. Which I made approx. 20,000 a year. With this reduction I would definately be below the median income. When I had this job I was slightly abve the median income. What would my options be? Could I convert to a 7 quickly after my part-time job ends or do I have to wait until my 6 month average goes below the median. I will be getting paid for about 14 weeks after my job ends as a severance. So I have a small amount of breathing room. Should I try to get another part-time job or would now be the time to convert. Should I contact the Trustee to see what my options are or my lawyer? I wanted to make it through this without going back to court, doing new schedules etc. but I had no control of this. Any thoughts would be appreciated. Also once my severance ends I will not be able to make all my mortgage, car and trustee payments however my trustee payments are through a wage order that would need to stop the day my severance ends in order to pay my other bills.
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Do you also work a full time job. If yes, I suppose I question the wisdom of filing a Chap 13 in the first place that would require you to work 2 jobs...but I digress.
As for the first thing you should do is contact your attorney, and hope you didn't go with some high-volume shmoo that won't do anything for you. To convert to a 7, you don't need to worry about the 6 month look back, but you do have to demonstrate to the trustee that the change in circumstances is more long term before you will be allowed to convert. Basically, what your attorney "should" do is immediately amend your chapter 13 plan to reduce your payments (even if that means you have zero payments for a few months). If the period of under-employment lasts about 3 months, then you would have your attorney file a Conversion.
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