Loss of income?

[lockedout]

Hello, I'm new to this forum. My wife and I filed for a 13 last June, and have a 100% plan. Starting in October are overtime at work was cut out as well as working any Sundays. That put us having about half the income we had when we originally filed. Next week will be my wifes last week of work, and it's going to be about 5 weeks before unemployment pay will start. Since our hours were cut we have went through all of our saving and have went back to living week to week. So my question is what options do I have to get through this, my wife will probly be out of work for the rest of the year, with unemployment payments of 350 a week. My current income alone won't cover the mortgage and the 13 payment.

[mindy0795]

Sorry your going through all of this stuff, the only thing I can suggest is talk to your attorney. You should be able to convert to a chapter 7 as long as your current on your mortgage and any other secured loans unless you want to give them up through the bankruptcy. I'm assuming your disposable income will be next to nothing with all of the income changes. Hope this helps, just remember your not alone!

[lockedout]

Mortgage in current for now. All of secured in the 13 has already been paid, no other secured outside of plan. Will they want the house in the 7, we are just about even on what it's worth compaired to what we owe, also the payment is $600 above median for this area.

[mindy0795]

Will you be below the median income now that you have had the loss of income? I'm assuming you will based on your first post. Yes you should be able to keep your house since you don't have much if any equity and as long as you are current on the payments. Based on what your income is now do you know what your disposable income is?

[lockedout]

I will have no disposable income alone. If we include unemployment are diposable might be about 400 per month. In Ohio unemployment is exempt, or so it says. I guess I will set up a appt with our attorney, I would like to get something going before we miss a payment. Anyone know how much a 7 coversion cost in attorney fees. Will we have to wait 6 months to let income get low enough.

[lrprn]

I will have no disposable income alone. If we include unemployment are diposable might be about 400 per month. In Ohio unemployment is exempt, or so it says. I guess I will set up a appt with our attorney, I would like to get something going before we miss a payment. Anyone know how much a 7 coversion cost in attorney fees. Will we have to wait 6 months to let income get low enough.

Absolutely set up a meeting or call your attorney asap. Even if you don't qualify for a 7 now, your income has permanently changed which means he/she can file an amended 13 and lower your payments significantly. Then if your couple income reduction continues on, after you get below the median, then you can file a 7.

Don't wait to talk to your attorney. It takes time to get an amended 13 or a conversion to a 7 in place. Get going!

[lockedout]

Called today and spoke the paralegal. They want me to write a letter with are current situation to get are plan suspended for 90 days. Then they said they would look at are situation before the 90 days was up to have are plan reduced, or converted. Does this sound right.