My husband is in a possible layoff and we are 16 months in to a five year Chapter 13 payout. Can we go into a Chapter 7? How long before you can do this after the layoff? What can we expect? I appreciate any input. We live in Texas.
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I'm a rookie and haven't even finished filing myself but what I've been told is everything is based on that 6 month lookback at your income. You almost have to wait until he's been out of work for a while before you can have things re-evaulated. You don't have to wait the full 6 months to show he hasn't been working if your payment is low enough or you're close to meeting the requirements of a 7. Don't forget, unemployment compensation counts as income. -
I'm sorry to hear your husband has been caught up in the economy downturnOriginally posted by Pattie Smith View Post
Contact your lawyer immediately to let him/her know about the potential layoff. If the layoff does happen, then your lawyer can contact your trustee right away to sort out what to do about your monthly payments. It's likely your trustee will allow skipping a few payments or paying reduced payments for a few months to see if your husband is called back to work or not.
If your husband's layoff seems like it's going to be extended, at that point you can work with your lawyer to see if you can qualify for Ch 7 without your husband's income. As already posted, once the six-full-calendar-months-lookback on the Means Test and Schedules shows your income vs. expenses is less than $100/month disposable income, then you two could have your 13 converted to a 7.
What you *DO NOT* want to do is just stop making your Ch 13 payments.
Keep working with your lawyer to sort out what can be done if your husband is laid off. I sure hope it's just a scare and doesn't really happen!I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to goComment
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LIVIN LOW Thank you for your response. I am praying he keeps his job.Comment
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I would still let your attorney know that a layoff is a very real possibility, so that the attorney has a little lead time to work on a strategy....Originally posted by Pattie Smith View Post
Just my thoughts. I hope he will keep his job too. Good luck!"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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I will get in touch with our attorney... Thank yall so much for your input.Comment
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