Lost Job

[Badjim19]

Is there any appeal process for 13's?

I was fired two weeks ago, (actually "allowed to resign"), I am about 44 month's into a 51 Mo. plan. I immediately informed my attorney who filed a motion to suspend payments.

I received a letter from the BK court yesterday, "Trustees Objection...." with a deadline to file a response.

TODAY, I received an Order to Pay Trustee $360.00 weekly (the same amount that was garnished from my wages) I can't pay it! I'm still looking for a job plus it's going to be very difficult to find a job paying what I was making.

I don't know what I can do, I'm at my witts end. The worst part is that all the secured creditors have been paid. The unsecured creditors have gotten about a 35% premium so far. The original plan called for the Unsecured to get 25%, but because of those who didn't file claims my premium went up to 58%.

The trustee won't budge, what the heck am I supposed to do? Does anyone know of an appeal process? My attorney has never mentioned it.

Badjim19

[2ndChanceTx]

It seems like you should be able to revise your plan to decrease because of the unemployment. I would talk to your lawyer or find one that doesn't mind fighting a little. Sorry for your bad luck...

[woeisme]

the trustee always objects to things, doesn't mean your lawyer won't respond to the objection and win. Talk to your lawyer, I think you are getting worried over the letter prematurely. The trustee doesn't even make the final call, it's the BK judge that decides these things I think. You should definitely be able to get the plan changed now that you are on unemployment, maybe even talk to your lawyer about converting to a CH 7 if the trustee continues to play hardball.

[Flamingo]

I remember reading in our Plan paperwork that you must continue to pay your Plan payments EVEN IF YOU LOSE YOUR JOB! I'm not kidding. Anyway, if you cannot find employment soon, I am sure your plan can be modified or converted to a Chapter 7. Best of luck to you.

[Badjim19]

Equity

Thanks, Everyone. I need some positive input, since things look so dismal.

The Trustee told my atty even before he filed the motion that, the Trustee would object to any change in the plan.

The only problem with a chap 7, as I understand it is the equity in my house. I may be mixing things up a bit but I remembered asking my atty about 7 when I filed. One thing he talked about was the equity. Of course in 2004 when I filed I was a wage earner too, so that may be the difference.

badjim19

[HHM]

Yeah, it is tuff to say.

If you don't have any income, you can't really amend your plan, because one of the requirements is that you have steady, reliable income in order to fund the plan (that may be what the trustee is getting at when he says he would oppose an amendment).

It also sounds like you may have a liquidation value problem. In a chapter 13, creditors must get at least as much in a chapter 13 as they would if you filed chapter 7 and non-exempt assets were liquidated (i.e. the equity in your home).

You may want to get an accurate appraisal of you home to find out how much equity you currently have, and then discuss with your attorney the possibility of a chapter 7 conversion.

[krielly]

Isn't there something under old law with regards to an early discharge of a 13? Remember, old law only required payments for 36 mos, but some debtors had to go longer to satisfy secured debt, or ensure that creditors would receive as much in the 13 as they would have in the 7??
Given the fact that all of the OP's secured debts are paid, and the fact that his percentage to unsecureds went up, due to lack of claims being filed, might he not qualify for the early discharge? I think this might have been called a hardship discharge?

Maybe others know more.......................

K

[kornellred]

It is my understanding that, in any case (old law or new law), the trustee can in no way supersede the law - only see to it that it is upheld. If you cannot meet your Chapter 13 obligations due to circumstances beyond your control, then your case cannot be dismissed unless you fail to convert to Chapter 7.

[krielly]

I KNEW I wasn't losing it
Might be worth checking into.....nothing to lose.

http://bankruptcy-law.freeadvice.com/consumer_bankruptcy/hardship_discharge.htm

[HHM]

I KNEW I wasn't losing it
Might be worth checking into.....nothing to lose.

http://bankruptcy-law.freeadvice.com/consumer_bankruptcy/hardship_discharge.htm

Yep, good call. Definately talk to your attorney to see if that is an option.

[papa0881]

Is hardship Bankruptcy for business's to?
Well I should say I am self employed, at time we filed though it was sole proprietor, now it is a corporation I own 49% wife owns 51% Could they still take away the business even if I only own 49%

the business is now a corporation, again I only own 49%, can they take the entire business away from me if i would ever default on the plan? I was always under the assumption that no one can take assets from you, unless they file for YOU which I have no more assets because business is inc. now. plus, i do not own it whole anymore.