Losing job while in a 13

[TheBKLounge]

I just found out that I will be out of a job--my company is closing its doors. My last check is tomorrow.

Our 13 was filed 11/2009 and confirmed in 4/10...July will be our 8th payment of 60.

I have left some messages with the attorney. I really would like to know what will happen. We are in the 13 simply because we earn too much (approximately 100K, 50K/50K each)--so if we can convert to a 7, I'd actually be pleased. We can make out 13 payment for July OK...but August forward will be tough...if not impossible.

What can I expect to happen moving forward? Are we subject to another means test looking back over the last 6 months? Or does some consideration get attributed to the sudden, substantial loss of income?

[SMinGA]

The basic options as far as I know:

Modify plan to lesser payment, to account for change in income/expenses
Convert to a ch. 7
Dismiss case, refile later.

I am not sure how it works with a sudden income change, in terms of means test, etc.

[newbie2]

I just found out that I will be out of a job--my company is closing its doors. My last check is tomorrow.

Our 13 was filed 11/2009 and confirmed in 4/10...July will be our 8th payment of 60.

I have left some messages with the attorney. I really would like to know what will happen. We are in the 13 simply because we earn too much (approximately 100K, 50K/50K each)--so if we can convert to a 7, I'd actually be pleased. We can make out 13 payment for July OK...but August forward will be tough...if not impossible.

What can I expect to happen moving forward? Are we subject to another means test looking back over the last 6 months? Or does some consideration get attributed to the sudden, substantial loss of income?

I don't know if this varies district by district, but we were faced with the same situation. (Job loss didn't happen, but it appeared it would.) Our attorney said she would file a conversion to a Chapter 7 immediately, all we had to do was call her when it did happen.

I hope this is the same for you, and that you are able to resolve this with the least amount of stress possible. Good luck to you.

[jtallerie]

I will be filing chapter 13 next week. We are both just back to work after 3 months. If anything else happens we will have to convert to 7.

[Billssuck]

This happened to us by my husband losing his job and then finding one making $1000 less a month five months later. If your attorney thinks a ch7 conversion is viable, they refile everything with a six month income look back. But in our case, we modified our ch13 to surrender our house and all we had to do was prove our new future income and complete a new expense sheet with renting vs owning. For us, it was cheaper to stay in a ch13 than to pay off our remaining ch13 fees paid in the plan and then pay ch7 attorney fees to convert. We only pay $125/mo now and the thing that was eating up our income was our home so we decided to let it go. Our ch13 payment didn't change at all but it was minimal to begin with.

[muzzey58]

Contact your Trustee asap to discuss your options. Your case is based upon the higher income levels and it becomes almost invalid if someone loses their job. I would almost go to the attorney's office to speak with them or at least a partner or paralegal to put a stay in the court payments. You can file an emergency hardship modification and have your chapter 13 dismissed because of the unemployment. As I said do this first thing on either Monday or Tuesday morning. This will stop all court payments. Then you can request to have your case modified to a chapter 7. You need to contact someone asap. Your trustee, the bankruptcy court and especially your attorney. Take care and good luck