Questions about converting to a 7

[bam531]

Hi all,
We are currently in Ch 13 (100 % payback) and have been for almost 2 years. We are currently paying 833.00 twice a month ( had to modify last year to due smaller paycheck) I have been laid off since Jan 2009 and will run out of unemployment in Oct. I did not contact atty when I got laid off because I was bringing home the same amount as if I had of been working. Here are my questions...Does trustee generally let you modify your plan more then once? Our income ( when unemployment runs out) will be 1,200 less per month. We have cut back on alot of expenses ( cable, cell phone,eating out, etc) If she lets us modify, anything less then what we are paying now will not even make house payment and 2 car payments. Is that normal? Since I am not working, will she want us to return one of the cars? I know there is a means test that we took prior to filing 13, and we would probably have to take another one if we convert. Is there a practice means test we can take before we contact atty? Just to see what our options are? Any ideas? Thanks!!

[lrprn]

We are currently in Ch 13 (100 % payback) and have been for almost 2 years. We are currently paying 833.00 twice a month ( had to modify last year to due smaller paycheck) I have been laid off since Jan 2009 and will run out of unemployment in Oct. I did not contact atty when I got laid off because I was bringing home the same amount as if I had of been working.

First, I'm sorry to hear about your layoff.

I wish you had contacted your attorney long before now, because working an amended plan through the trustee can sometimes take several months. Since your unemployment income is dropping off next month (October), how are you going to make your payments if your plan can't be amended quickly?

Does trustee generally let you modify your plan more then once?

Yes. If your financial circumstances change significantly and will last more than a few months, your plan can be amended as many times as can be justified.

Our income (when unemployment runs out) will be 1,200 less per month. We have cut back on alot of expenses ( cable, cell phone,eating out, etc) If she lets us modify, anything less then what we are paying now will not even make house payment and 2 car payments. Is that normal?

Not sure what you mean here. If an amended plan reduces your monthly payments to match your new income level (which will also likely reduce your payback % to less than 100%), how can you still not make your house and car payments?

Since I am not working, will she want us to return one of the cars?

No. You are still a licensed driver. That's what matters. Otherwise stay-at-home parents couldn't keep their cars, and they sure do

I know there is a means test that we took prior to filing 13, and we would probably have to take another one if we convert. Is there a practice means test we can take before we contact atty? Just to see what our options are? Any ideas? Thanks!!

Please contact your attorney immediately Monday morning and let them know your income is going to drop significantly next month so making your payments on time is in jeopardy. Don't waste any more time than you already have. Completing a Means Test and Schedules on your own first is a waste of precious time. You have a lawyer - this is exactly what you paid him/her to do for you. Why have you been so reluctant to tell your lawyer about the job loss?

Your lawyer is your best friend in this situation - you've kept him/her in the dark about this for nine months! Please don't keep him/her in the dark any longer. Your plan is at risk of being dismissed for non-payment here - get going!

[gingerbug]

We made adjustments to the amount we paid out during the couple of years we were in a chapter 13 and it took just a few days to make that adjustment. I just was on top of making sure the BK paperwork reflecting the new amount was sent to dh's pay department so they took out the correct amount as they were usually the last to know about it. We converted to a chapter 7 when dh was injured from work and I wasted no time talking to the attorney about it. It was painless, the conversion, that is.

[justbroke]

Any ideas? Thanks!!

I see that the fully capable lrprn has answered your questions. I too am both sorry to hear about your unemployment, but at the same time I'm sorry to hear that you never contacted your attorney!

I want you to follow lrprn's instructions and find your lawyer on Tuesday.

[woeisme]

i think the OP might have meant that their house payments are "in" the plan, and paying less to trustee means they aren't paying what they owe on house. Is that correct? because that could be a big problem.

[bam531]

i think the OP might have meant that their house payments are "in" the plan, and paying less to trustee means they aren't paying what they owe on house. Is that correct? because that could be a big problem.

Sorry I didnt explain that part very well in original post...yes, house payment and both car payments are included in plan. House payment is 685.00 a month (and that is what trustee is paying) she also pays the full payment on one vehicle and partial on the other. That is what has us worried!! The reason we didnt contact attorney sooner is, when we modified the last time the trustee did not request that bonuses go to the plan. The bonus hubby got ( not a big amount) was used to purchase washer and dryer.The bonus he gets in Oct ( which we hope is bigger) will be used to purchase refidgerator ( using rent to own now) and a used car ( his car is falling apart). That is the reasons we are waiting to contact attorney. I will call Tuesday and make appointment to see atty. Thanks!!