Chapter 13 & Layoff

[Smokinjbc]

2 days after my 341 hearing, my employer has let me know today that I have been laid off.

I have worked for this company for over 9 years and it came completely out of the blue. They did give me severence pay (about 1 1/2 paychecks worth). I've paid one payment to my trustee and could probably do another and keep my car current until it's paid off in Nov. I think of my self as very employable, will get a good reference from my employer (once I cool off hating them enough to ask for it- seriously, I would have taken a cut in pay or benefits- anything to avoid leaving them- . ) But I can't lose my opportunity (or the $$$ I have paid and probably will owe to my lawyer) to get a new start. I have IRS debt, so I can't convert to 7. I plan on talking to my lawyer's office first thing Tues a.m but has anyone else been in this situation?

Crap. I'm a really, really screwed.

[rrockinggramma]

your case is not yet confirmed. You need proof in writting that you are being laid off and that your unemployment benefit will not be enough to handle everything and then I would convert and work out a schedule with the IRS

[justbroke]

I concur with grandma. Notify your attorney immediately and do a conversion to Chapter 7. Since you have no more income, you'll have IRS issues anyhow, so don't think of a Chapter 7 as impossible.

Worse case, get through Chapter 7, ask the IRS to hold collection 9which they do in a Bankruptcy anyhow), and then eitehr go back to work and start a Chapter 13 to pay the IRS, or just go back to work and pay the IRS under an installment plan.

[AngelinaCatHub]

A chapter 7 filing will toll the IRS as well. It will not stop you from owing it but until discharge it will not be payable.

I owe IRS 27K and was paying them on a plan of 550 a month. It was just a little too tight for me, as we only have SS and a little pension, so I called and asked them to reduce to 400. This was no problem for them, they accommodated me and I am discharged and will pay them till it is paid. You are prime for a C7, go for it. 'Hub

Edit add on: Don't forget to file for UC.

[ForumReader]

A chapter 7 filing will toll the IRS as well. It will not stop you from owing it but until discharge it will not be payable.

I owe IRS 27K and was paying them on a plan of 550 a month. It was just a little too tight for me, as we only have SS and a little pension, so I called and asked them to reduce to 400. This was no problem for them, they accommodated me and I am discharged and will pay them till it is paid. You are prime for a C7, go for it. 'Hub

Edit add on: Don't forget to file for UC.

Sorry, I keep asking the same question about what the abbreviations/acronyms mean from this forum, but for UC, does it mean unemployment compensation?

[justbroke]

Sorry, I keep asking the same question about what the abbreviations/acronyms mean from this forum, but for UC, does it mean unemployment compensation?

yes, Unemployment Compensation, in this particular case.