OMG...my hours are being cut in half...it has finally happened to us too

[indebt00]

We have not filed yet...and I am getting a permanent reduction in hours. I emailed our lawyer and he said that permanent changes can be forward going...I'm confused. will we have to wait 6 mos to file now????
will our payment go down??

I am calling lawyer after work to get details but there is no way we will be able to afford the payment on our prev income.

what happens now? help??

[optimistic1]

you most likely will need to wait, and instead, file a Chapter 7, but I dont know your case specifics to tell you the truth.

Provide more details.

[EricaCallaha]

If you provide some more details...we can give you some better advice....

[indebt00]

I don't think ch 7 is viable for us. My Husband makes more than the median alone by about 10k I think We are in AZ. I had a ch 7 about 6 years ago. So it's not a good one for us. I have 90k unsecured debt on my own and want it included. plus....we have told a few creditors already.

I will be losing about 1600 per month take home pay. this is huge for us....the difference in starving or not.

so....I am really hoping to be able to go into the ch 13 with a different income and much lower payment so that we can get thru this. the ch 13 is supposed to be a positive for us.

what do you guys think?? I am still waiting to talk to lawyer.

[EricaCallaha]

What if you have your attorney run the numbers with the income reduction? He will be able to give you a different number to work with. You may have to wait several months to file, but this can be all the difference where the payment is concerned. If you wait six months and have your reduced income, you will have a lower payment. The six months of waiting can be trying, but worth it to make a workable 13 payment plan.

I think that you are on the right track. Good luck.

[indebt00]

What if you have your attorney run the numbers with the income reduction? He will be able to give you a different number to work with. You may have to wait several months to file, but this can be all the difference where the payment is concerned. If you wait six months and have your reduced income, you will have a lower payment. The six months of waiting can be trying, but worth it to make a workable 13 payment plan.

I think that you are on the right track. Good luck.

thank you...thats what I was hoping. I left a msg with lawyer but he was busy and I was at work. will chat with him hopefully tomorrow and he will let me know what our lower pymt would be....I gave him my new paycheck info.

we will have to wait longer though...right?

[blindsided]

Basically your payment is based on your disposable income, so a reduction in hours won't change your budget. What could trip you up is if your payback is less than the Ch 7 liquidation test, so you should review those numbers.

[EricaCallaha]

Blindsided has a good point too. With the reduction in income, you may qualify for a 7 now. You may have to wait a few months to file, but worth it in the end to do what works best for you.

Blindsided: I wasn't referring to the budget numbers, but a reduction in income reduces disposable income to be paid into the plan. Therefore a lower plan payment.

Good luck....Hope it works out for you.

[indebt00]

Blindsided has a good point too. With the reduction in income, you may qualify for a 7 now. You may have to wait a few months to file, but worth it in the end to do what works best for you.

Blindsided: I wasn't referring to the budget numbers, but a reduction in income reduces disposable income to be paid into the plan. Therefore a lower plan payment.

Good luck....Hope it works out for you.

but if my hubby makes more than the median for AZ on his own even if I lost my job...we wouldn't qualify....right?? plus I can not file ch 7 (previous).
I would be estatic if we could do ch 7 but....ch 13 is the answer for us.
I am supposed to talk to lawyer today (we have a phone appt).
thanks guys