In big trouble with 13!!

[justbroke]

I would not contact the Trustee. Your lawyer is there to run interference. Without your attorney, the Trustee would have already moved to dismiss your case. It is not worth beating you up over the mistake of hiding money from the Trustee. Your options are to either allow the case to dismiss or to find a way to come up with a lump sum by your last payment date in January.

The options you list are all fair options. However, the refinance could be difficult if you haven't maintained your credit well enough over the 4 years in the Chapter 13. To refinance, you'll need permission from the court and Trustee. You'll also need to file a modified plan. These are things that your lawyer will help you with.

Do not be surprised if this runs up additional fees that you must pay your attorney... maybe even outside the plan.

As Mayo has written, it's time to make an actual appointment with your attorney, rather than trying to hash things out by e-mail. Go in, admit your fault, and come up with a plan. The plan, in the end, may end up being a combination of both #1 and #2.

Please don't be mad at your attorney. It doesn't read as though your attorney did anything wrong.

[Mayo]

What is done is done. I'd personally go sit down with the Lawyer and hammer out a plan. If you refinance your house you would probably still need permission from the Trustee. Good Luck.

[road warrior]

I've been in chapter 13 for 4 years, scheduled to be done in January 2013. I'm making a monthly payment of $1086, paying our $400/month home mortgage outside the plan.

In Feb. 2011, I got a work comp settlement of $40,000 for an injury I sustained at work and had 2 surgeries for. I didn't report it to the trustee, and I wish now I would have. So, instead of kicking me while I'm down, read the rest of my dilemma.

3 weeks ago, I got a nasty call from my lawyer. He told me the trustee found out about my settlement and basically is ready to throw my case out. He wanted receipts/bank statements, basically anything that showed where I spent the money.

I sent receipts for about $28k, showing I'd hooked onto the city sewer system, built a shed on our property, bought a four wheeler, and made other improvements to our house that had been neglected for quite some time.

Now, the trustee wants $23,000 in addition to our regular payments of $1086/mo. by January 2013.

Option 1 - I can sell my truck, 4 wheeler, a utility trailer I had for my now defunct lawn mowing business, and whatever other household items I can get money for. I can also change my withholding allowance at work to get no federal tax withheld for the next year, hopefully netting me enough to pay this $23,000 off by January.

Option 2 - sell about $6-8k worth of stuff and try to refinance our home with a VA loan.
We currently owe $58k on a house I think is worth around $85-$90k.
My lawyer is a jerk and doesn't answer emails in detail, and I hate to call him because I don't do well talking on the phone without getting mad and yelling.
I don't know if I should try to contact the trustee and talk directly to him or not. I'm at the end of my rope!
Any advise??