Laid off while in Chapter 13

[FloridaPeach]

I was laid off on July 2nd and given 5 weeks severance. I called my attorney's paralegal the same day and she advised that I would still need to make my payments because the Trustee wouldn't approve a new plan with the numbers I submitted originally. Our rent has gone up since my plan was approved last year, as has child care. She asked me why I was still sending my child to day care if I was unemployed. I told her that he is now actually in Pre-K and tuition is higher. Our combined annual income previously was $119,000 for 3 people. It is now only $42,000 ($59,000, including unemployment that I have yet to receive) and our health insurance has now increased. We cannot afford a payment of $711 anymore. Included in my payment plan are my car with a little over $2,000 left owed and Federal taxes of roughly $6,600.

Any advice is greatly appreciated!

[LadyInTheRed]

You need to talk to the attorney instead of the paralegal. With that kind of decrease in income, you should be able to modify your plan.

[Flamingo]

We were advised during our Plan that even if we lost our jobs, we still had to make those plan payments; get an appointment with your attorney and sit down and go over this because if you cannot get another job in a reasonable period of time, your entire Plan will have to be modified or you will have to consider converting to Chapter 7, depending upon your circumstances, etc. Best of luck to you....times are bad out there...

[FloridaPeach]

Thank you, both!