In 13 and loss of income

[AtWitsEnd]

I know this has been discussed over and over, and I did search and read all of the posts.

We are 1 year in our chapter 13. We were over the means test when we filed and had almost $20,000 of unexempt equity in our home when we filed. My husband works in the steel industry and his pay has been cut considerably, I work for a school district and receive no pay for the months of June, July and August. I contacted our attorney at told him of our coming problem for the summer and asked him if we could file a motion to suspend payments until I go back to work in September. He told me he would get back to me in a few days with some options for us to consider. (Which is cool, I would just like to speculate what some of those options may be!)

Even with both of us working we now fall under the median income for our state. The problem is the equity. Could we have a new appraisal done (our old one is 2 years old and it did come in much higher than expected) that shows our equity exempt and file for a conversion? Or do they take the figures from the day we filed a chapter 13?

I don't think we can modify our plan with lower incomes beacuse of the equity. That $20,000 is the amount we are paying into our plan. As that is the amount creditors would receive if we had liquidated in a chapter 7. Is it even possible to modify our plan with a new appriasal, or is it too late for that?

What are some other options that I'm not thinking of? Selling the house is not an option, btw.

Thanks in advance for any advice

[Flamingo]

Some options may be you getting a job for the summer months or possibly modifying your Plan or some payments may be suspended but added on at the end of your Plan if the trustee agrees to do that. If you want to save your home, you may have to in order to keep your home by staying in the Chapter 13. You need to figure out if you can truly afford to keep your home and if you convert to a Chapter 7, it may have to go. You mention that selling the house is not an option but when it comes to BK and one's situation, you may not have much of a decision as to your home.

[woeisme]

maybe this is too extreme, but as a last resort if your lawyer can't work something out with your 13 is to let the 13 get dismissed (but only if you didn't have back mortgages or other secured assets you are trying to save but behind on) in the plan. Wait it out as long as you can with the renewed hounding from creditors, then file 7 with new appraisal and income #'s. but again, see what your lawyer says, this is a last resort.

[AtWitsEnd]

Thanks for your input! No, we have no back mortgages or other secured to be paid. It is our desire to stay in the 13, as we are pretty sure this is just a temporary income thing. When I start back to work in September we should be back on track pretty quickly. It was just for the summer months that will not be do-able for us. Hopefully the trustee will agree to suspend our payments for a few months. We are already in a 60 month plan, so I hope it can be worked out somehow. Once again, thanks!

[Mom2one]

Wendy email me when u get a chance!

[lockedout]

Thanks for your input! No, we have no back mortgages or other secured to be paid. It is our desire to stay in the 13, as we are pretty sure this is just a temporary income thing. When I start back to work in September we should be back on track pretty quickly. It was just for the summer months that will not be do-able for us. Hopefully the trustee will agree to suspend our payments for a few months. We are already in a 60 month plan, so I hope it can be worked out somehow. Once again, thanks!

Request to suspend payments. Write a letter to your attorney stating the reason, and the months you would like to skip. It's a three month suspention so you should be fine. My wife and I are both steelworkers, shes laid off, and I have not been given any overtime since October, the motion to suspend was confirmed with no problem for us.