Chapter 13 while unemployed

[SAO]

Hello all!
I have a question about my Chp. 13. I have been on it since 2008. I lost my job about 2 months ago and Im have problems making payments. My attorney office said that my income is not sufficient because I am getting unemployment benefits. I am making my mortgage payment but just dont have enough to make payments to my lawyer for the Ch. 13. Pls help..

What options are there for me (if any)? Should I or could I convert to Ch. 7? I would like to keep my home. I am in Georgia.

Thanks in advance for all your great help and suggestions!

[keepinitreal]

SAO, yes it is possible to convert from a 13 to a 7 because of a loss of income. Ask your attorney to run the numbers for you. Good luck!

[despritfreya]

1. You have to ask yourself, "what was I trying to accomplish in the 13 that will fall apart if I convert to a 7?"

2. You have to ask yourself if, based upon 1 above, do I want to save my 13?

3. If the answer to 2 above is "yes", you have to ask yourself "while I have been out of work for 2 months, what is the likelihood that I will find suitable employments, say, within the next 2 months”?

4. If the answer to 3 above is "very likely" then you need to discuss with your attorney a Motion for Moratorium which is basically a motion asking the court to waive 3 or 4 payments until you are back on your feet. The missed payments are made up by increasing the future Plan payments slightly.

5. If the answer to 3 above is "not very likely" then considering a 7 makes sense. If you convert you can keep your home if you are current and continue to make the payments (or get the lender to modify in some way like so many others are trying). If you are able to convert you will:

a. lose any non-exempt assets (of value) you had when you filed the 13.
b. lose any vehicle you were paying through the Plan unless you work it out with the lender.
c. deal with any priority claims on your own.
d. deal with any "property settlement" claims from a divorce - if applicable in your case.


Des.