Plan Modifications

[Badjim19]

Is anyone familiar with the Trustee for the Middle Tennesse District? I'm wondering if he's a hard a** or if maybe my attorney doesn't have a good rapore with him.

I have a hearing Monday (28th) pertaining to a motion my attorney filed to suspend my payments for 90 days. This was because I lost my job on 6 March and have not been able to find a new one. Seems I'm over-qualified for most.

But all through this process my attorney is like doom and gloom, I was about 42 or 43 month's into My 13 (52 month plan) when I lost my job. My att seems to think I may get a dissmissal.

I've followed some of the advice I was given on this site and asked about an hardship discharge (all the secured creditors have been paid and the unsecured have been paid more than the original premium) or converting to a Chap 7, but my Att says losing my job is not grounds for a hardship discharge and I might lose my house anyway under a 7 because of the equity.

I just seem to get the feeling from my atty that he is afraid to fight for his client (me) because he doesn't have a good repore.

I've seen posts on here were other trustee's have been very willing to allow filers to miss a payment or extend the plan some etc... My attorney always says the trustee will want to know how I'm going to catch the missed payments up.

I'm considering seeing another atty, just not sure.

[lrprn]

So sorry to hear about your job loss, Badjim

I've seen posts on here were other trustee's have been very willing to allow filers to miss a payment or extend the plan some etc... My attorney always says the trustee will want to know how I'm going to catch the missed payments up.

Your lawyer is absolutely right about the trustee asking if your payments are delayed how you are going to make the payments up once the delay is over. That would happen in any district and with any trustee.

The bottom line is that you can't stay in Ch 13 if you can't make the payments. And you can't amend your plan until you find another source of steady employment that provides at least enough disposable income to fund an amended plan in place of the plan you have now. No source of reliable income = no Ch 13.

I'm considering seeing another atty, just not sure.

Frankly jumping ship mid-plan without clear knowledge your lawyer is an idiot is a bad idea and in the situation you describe, won't change a thing. You still have to have a steady source of income no matter who is representing you to stay in your Ch 13 plan.

You are in a very tough spot. I will be hoping you are able to post soon that you found another job very soon because it's really your only option.

[wayne-o]

I am in middle tennessee and the trustee seemed ok to me. Never any problems and his office was always helpful. He might let you suspend the payments for a while, but he is bound by certain rules as well. I wish you well in your job search

[Badjim19]

Ok

Well Thanks! Turns out I'm OK for now. I knew I couldn't stay in Chap 13 if I couldn't make the payments. It just seemed like my Atty wasn't in my corner so to speak.

HOWEVER! My attorney did do a great job for me, my hearing was this morning which I did not have to attend. The hearing was to to suspend oayments until May 8. I spoke with mt Atty last eve and he said that since I don't have a job yet and no way to catch up or even start payment again there was nothing to hear and the trustee would most likely dismiss the case.

Atty got to courthouse early and talked to the trustee before any of the other hearings and the Trustee first agreed to the motion, which gives me a little time but I need to start making payments again by May 8. As part of the aggreement I have to attend a financial workshop and give any future tax returns to the trustee. (which would only be next years, since I'm so far along). All in all I came out OK. Nothing immediate looming anyway.

Then to make things better, last Thursday I got a call from a guy I know just a little bit from my running circles. He said he heard I was looking for a job and told me his company was needing somebody. It's nothing I've ever done before but it's a travelling job where You're out on the road 3 weeks then have a week off. I haven't talked to them yet but I would think if they're expecting that kind of time commitment it would have to pay pretty well (I hope). Because another part of the agreement was my payment goes up.

All in all I'm doing great at the moment!!

[Flamingo]

In your approved Plan paperwork, it is stated somewhere that you must continue to make your Plan payments even if you lose your job. It was in ours. What has to be done in a situation like that is to find employment ASAP if possible. If that is not possible, follow your attorney's advice who knows your situation better than anyone else.

[krielly]

I'm surprised that this case could not be converted to a Chapt 7?
You obviously filed old law, which required a minimum of 36 mos of disposable income payments - which you have surpassed.

Have your creditors received as much to date as they would have in a Chapter 7?

I guess my assumptions were incorrect? Others can jump in here.....

[lrprn]

I'm surprised that this case could not be converted to a Chapt 7?

This case could most definitely be converted to a Ch 7 case if the OP (original poster) doesn't find a job because his/her income back six months will eventually slip below the state median for his family size.

However, there may be assets (home, property, etc) that the filer could lose if the case is converted to Ch 7. We won't know if that's the case unless the OP gives us more information about his/her specific situation.

[Badjim19]

More Info

I've paid in for 42 or 43 month's. All the secured creditors have been paid. The unsecured creditors have been paid about 31% of their claim amounts so far, the original plan called for them getting 25% but because of the creditors who didn't file claims, the percentage due each increased to 58%.

I do own a home with about 20K equity in it. My SUV is worth 4,000 at best and I'm still paying the unsecured part of that loan.

I have about $15,000 left on my plan to pay it off according to what my Atty tells me. I don't know how much of that includes house payments.

Even though I haven't had a job I have been paying the house payment into the plan as instructed by my atty. Fortunately I got a decent tax return and was able to keep those up. I'm about at the end of my assets though. And need to find something soon at least for living expenses and the house payment.

I haven't recently discussed Chap7 with my atty recently, but When I filed in 2004 I remember him mentioning 20K equity was right on the margin where the trustee may want to take the house.

badjim19

[krielly]

Does your plan give you the estimated percentage creditors would have received in a 7 vs the 13?

I would think that if you had already satisfied that amount, you would be a good candidate for a conversion to a 7.