Change in Income

[chloe0724]

Ok, so my husband and I are getting ready to file 13 in May. He is facing some major medical difficulties (part of what got us here). These difficulties may result in a major job change after we file. How hard is it to convert to a 7 if his income reduces significantly? Would we have to wait for 6 months, or could the trustee be approached as soon as it happens? Our attorney is putting in our filing paperwork that my husband is possibly facing disability in current job.

Also, how does having a child during a 13 factor in? We are bothe 31 and would like at some point to have children. I want to do it prior to 35 because of the health risks. Will the trustee revaluate the payments if we have a child in the 5 year period?

[lrprn]

Ok, so my husband and I are getting ready to file 13 in May. He is facing some major medical difficulties (part of what got us here). These difficulties may result in a major job change after we file. How hard is it to convert to a 7 if his income reduces significantly? Would we have to wait for 6 months, or could the trustee be approached as soon as it happens? Our attorney is putting in our filing paperwork that my husband is possibly facing disability in current job.

Knowing that you could have significant additional medical bills to pay after filing that can't be discharged and a possible job loss to boot will make maintaining your initial Ch 13 payments on time very difficult. However, it's good that your lawyer is aware of all the issues and potential changes. Your plan can be changed over to Ch 7 as soon as you qualify for it. If you don't, then your Ch 13 plan can be amended if the financial changes are significant, ongoing and long-lasting.

Also, how does having a child during a 13 factor in? ... Will the trustee revaluate the payments if we have a child in the 5 year period?

If your family size changes after filing, then an amended plan reflecting that change can be filed with the court. If everything else has remained the same, then chances are your payments will go down to accommodate the extra costs a baby brings into a family.

One thing to keep in mind is that every time your lawyer has to file an amended Ch 13 plan, your trustee gets another chance to object plus your creditors are notified again and get another 90 days (the government gets 120 days) to object if they wish. The chances any objections being filed after they didn't the first time is very low, but your new plan can't be confirmed until after the time passes.

Hang in there. Ch 13 is more of a cross-country race than the sprint of Ch 7. Everything will turn out ok - just keep your lawyer informed of any financial changes going forward.