What if I loose my job, fired or quit?

[lookin4info]

Many things are going on at my job right now, it is becoming harder and harder to go to work each day. Fellow employees are being written up for very trivial things, and then fired for the number of write ups they have. It seems to be a way to get rid of people. They are downsizing, and by firing people, they can get away with paying unemployment and severance pay. Anyway, it has become so stressful, it is causing some physical problems, but nothing that could be counted as a disability. I have considered quitting thinking it would look better on my resume than if I was fired! My real concern of course is the Ch 13. Mailing our 5th pmnt on Tues. and don't want anything to go wrong! As long as I found a way to keep making my payments, would there be a problem with my plan. I don't want it to get dismissed while I found another job. Our plan is already for 59 months so I don't think it could be extended. We are only paying 1% to unsecured and everything else is going to our car, IRS, and state taxes, so I don't believe our payments can be lowered since these are all at 100%. Just at my wits end. Thanks for any input.

[lrprn]

Unfortunately our crystal balls don't work any better than yours does .

One thing you can do right now is update your resume and get out there networking to see what job openings there may be in your field at your same approximate income (or maybe even higher!). Do your best to weather the stress and keep your paychecks coming so you can make your Ch 13 payments until you can find something else. Your description of your workplace sounds like it's a bit on the toxic side right now.

If the shoe drops before you can find something else, then contact your lawyer immediately so he/she can notify your trustee and see what can be worked out while you look for work.

Hang in there. Hopefully you will be one of those who survive the purge. Good luck!

[MSbklawyer]

There are basically four options when 'LIFE' gets in the way of making your Chapter 13 plan payments: Extend, Amend, Suspend and Convert.

Your plan payments are already at 59 months, so you would only gain one month by extending your plan payments to the maximum 60. If you're unemployed for more than a month, that won't help.

From your original post, it sounds like you are in 13 because you have non-dischargeable tax debts that you are paying off through your plan. Thus, amending your plan or converting to 7 are probably not viable options, but I don't know enough about your situation to say that with certainty.

The other option is to suspend your plan payments. Basically what happens is that with the court's permission, you miss a couple or three plan payments, and your remaining payments are increased by an amount to cover the missed payments.

Just as an observation, though, you don't need to wait until you get fired or quit to start looking for another job. Nothing illegal about looking for greener pastures now.

[Flamingo]

When we filed and were confirmed, it stated right in our paperwork that even if we lost our job, we still had to make the plan payment. In any event, you don't want to be in the position to have your Plan dismissed for nonpayment. In the event you lose your job or there is a reduction in income, increase in income, etc. always contact your attorney handling your Chapter 13 so your Plan can be reviewed for modification and you get the proper advice for your particular situation.

[lookin4info]

Thanks for your feedback. I am getting the old resume in order. I've been at this job for 12 1/2 yrs, and its hard to think about working somewhere else. I'm too old to start over! I will check into what is available, I would love to find something I can do to work from home, (wouldn't just about everyone, lol!) but at least at this point, I have the benefit of being in control. After reading all your comments, I do feel better about things. Thanks a million!

[knitty]

what if I loose my job, fired, or quit

I don't understand the part about "even if we lost our job, we still had to make the plan payment". Loss of income, I would think, would be a major reason to ask for a modification...the original plan was based on DMI, which is derived from the original stated income...how can that be a requirement? Am I missing something?
I've inquired of our attorney re this situation and was always told that once it is a reality....the loss/decrease income, then come in and talk about it and see if a modification is warranted.

This is in reply to Flamingo, not OP

[knitty]

Reply to Flamingo: I don't understand about this part: "even if we lost our job, we still had to make the plan payment" Isn't the Plan based on income and DMI in the first place? If there's a major decrease in both how can the original payment be made? Wouldn't a petition to amend plan be warranted?

SORRY for the double post, I couldn't figure out how to delete one of them!!

[LadyInTheRed]

knitty,

If you have a permanent loss/reduction of income, you can apply for a modification. But, you have to keep making your payments until a modification is approved. For a modification to be approved, the new plan will still has to be feasible, which means the new payment has to be sufficient to pay secured and priority debts. Since the OP's current plan includes secured and priority debt and only pays 1% to unsecured creditors, there is likely very little room for a reduction in payments. After a reduction in income, the new DMI may not be sufficient to propose a feasible plan.

[knitty]

thanks
our secured claims have been paid and now it's the other's so maybe we'll be ok....we can manage the current payment until mod is approved