Is it possible to suspend plan payments until chapter 7 can be filed?

[kcfaninin]

We have an appointment with a different attorney regarding dismissing our Chapter 13 and filing a Chapter 7, or converting our 13 to a 7. Is is possible for the trustee to suspend or lower our payments until we are able to file a Chapter 7, which would be in October 2009? Our plan payments and living expensed are causing us to be negagtive each month due to decrease in work hours and unexpected expenses. Does anyone know if this is possible?

[justbroke]

Absolutely possible and it is often done. Do you currently have an attorney? (I don't see why you're hiring a new one for Chapter 7.)

In any event, through your attorney, you would ask the Trustee to suspend or reduce payments. They typically can suspend them in total for 3 months if you have a good reason.

Then you can get your paperwork ready to convert to a Chapter 7. Actually, you said "voluntary" dismissal. I believe that if you voluntarily dismiss your Chapter 13 you will be prohibited from filing under any chapter of Bankruptcy for 180 days from that dismissal.

[kcfaninin]

We are getting a second opinion from a different attorney because our current one is refusing to help us. You can see my story from my previous posts. But, to make a ling story short, we have approached our attorney about amending our plan payments and she said we needed to pick up an extra part time job or cut back on some living expenses. We already work 4 jobs between the 2 of us and live frugally now. The only thing we could cut back on is FOOD!! She was the one that said we had to "FUDGE" our numbers on the means test in order to get us more disposable income. She said if we can't get our numbers to an 80% payback, the trustee will deny our case. The numbers for our living expenses that were filed were way LOWER then what we actually spend. We are using last months income to pay for this months bills. We are 20 months into are Chapter 13 and we can't go on like this much longer, physically and emotionally. After we pay the court and our living expenses, we have $12 left each week. If anything unexpected comes up, we have to get a payday loan. We have explained this to our attorney and she said "everyone is struggling with the economy." "You just need to work a 3rd job" If this new attorney says we qualify for a Chapter 7, (which we can't file until October) what happens in the mean time, decrease or suspend plan payments?

[justbroke]

We are getting a second opinion from a different attorney because our current one is refusing to help us. You can see my story from my previous posts. But, to make a ling story short, we have approached our attorney about amending our plan payments and she said we needed to pick up an extra part time job or cut back on some living expenses. We already work 4 jobs between the 2 of us and live frugally now. The only thing we could cut back on is FOOD!! She was the one that said we had to "FUDGE" our numbers on the means test in order to get us more disposable income. She said if we can't get our numbers to an 80% payback, the trustee will deny our case. The numbers for our living expenses that were filed were way LOWER then what we actually spend. We are using last months income to pay for this months bills. We are 20 months into are Chapter 13 and we can't go on like this much longer, physically and emotionally. After we pay the court and our living expenses, we have $12 left each week. If anything unexpected comes up, we have to get a payday loan. We have explained this to our attorney and she said "everyone is struggling with the economy." "You just need to work a 3rd job" If this new attorney says we qualify for a Chapter 7, (which we can't file until October) what happens in the mean time, decrease or suspend plan payments?

Wow that lawyer is questionable, if what you write is accurate.

The Trustee does not deny your Plan... only the Judge can do that. Specifically, the Trustee (Tee) can only object to your plan. The Judge will confirm any plan that is in good faith and that is manageable by the debtor. There are Districts where the Tee will object to any plan under 75%, but that's just because they can. It's not because the plan isn't confirm-able.

You should have never signed that petition. They are signed under oath and you just really... didn't do yourself a favor.

I'm starting to think that your lawyer was one of those "inexpensive" ones and that the lawyer doesn't want to do anything because the fees were so low. This happens way too often... in my book.

[kcfaninin]

She charged us a $3500 fee and I don't think that's inexpensive. She's just giving cheap advise!! Based on our situation, do you think the trustee would postpone our payments or even decrease them until we can file for a Chapter 7 in October? Or, do you think we would be advised to dismiss our plan and then refile for a Chapter 7? In my opinion, I think it would look more favorable to covert to a 7 rather then to dismiss and refile. Just curious as to what the attorney/trustee might recommend for the next 5 months because we can't afford to live like this much longer.

[justbroke]

Don't know on the discharge versus conversion. I will say this... for $3,500 that lawyer should have fought for you! Sounds like you have a lazy lawyer who likes to charge high fees. I thought you were going to respond with it was $1,750 for the lawyer.

In any event, conversion is a right. The question is, how does you qualify for it. I know that Trustees seem to easily approve 3 month payment holidays... but for 5 months... I don't know.

I'm willing to be that your lawyer will suggest that you just dismiss. (Less paperwork.)

[kcfaninin]

When you say that the lawyer would probably recommend a dismissal, do you mean our current "LAZY" one or the new one we have an appointment with? The new one seems a bit more compassionate and bankruptcy is all he does. We meet with him June 2nd. My husband refuses to deal with our current attorney. As a matter of fact, I just tried to call her to ask a question about suspending our payments for a few months and she won't even take my calls. I have called her before with questions and I can't get past the secretary. So basically, we are working with an attorney that is not available to us. If we dismiss our case or convert to a Chapter 7, what happens to the remaining amount we owe our attorney and the trustee? When we meet with the new attorney on June 2nd, which is a consultation, will he be able to help us that day or will we have to come back? We don't have any money to live on, the court is taking it all. I lost $400 this week in income due to our low census at the hospital and being put on call. When you are allowed $12 a week in disposable income, and now you are a negative $388 and the utilities are due to be shut off and there is nothing left for groceries, what is a person supposed to do? We are desperate for advise!!

[justbroke]

When you say that the lawyer would probably recommend a dismissal, do you mean our current "LAZY" one or the new one we have an appointment with?

Your lazy one because they believe their fee was already earned. LOL! (Which it could have been earned based on the contract you signed with them.)

If we dismiss our case or convert to a Chapter 7, what happens to the remaining amount we owe our attorney and the trustee?

You don't "owe" the Trustee any remaining amount. The Trustee is paid based on monthly disbursements. They disburse nothing, they get nothing. As for your attorney, most fees in the Plan are for monitoring. So if there's no monitoring to do, then they earn no fee. (If there are "earned fees" in your Plan, I don't know if you can discharge them in the Chapter 7. )

When we meet with the new attorney on June 2nd, which is a consultation, will he be able to help us that day or will we have to come back?

Don't know. Your current attorney of record is the other one and you'll have to deal with that at some point. Did you mention the fact that you already have an attorney handling the current case?

We don't have any money to live on, the court is taking it all. I lost $400 this week in income due to our low census at the hospital and being put on call. When you are allowed $12 a week in disposable income, and now you are a negative $388 and the utilities are due to be shut off and there is nothing left for groceries, what is a person supposed to do? We are desperate for advise!!

You are supposed to immediately contact your current attorney. They are to immediately ask the Trustee to temporarily suspend payments for 3 months (and propose a plan to make-up the payments or to convert). If your lawyer is refusing to do that... you need to have a heart to heart with him/her!!! Don't let this go another week.

[kcfaninin]

Ok, is that our leagal right to request a suspension and is our lawyer required to follow through with it? What if she doesn't? Yes, I told the secretary when I made the consultation appointment about us currently being in Chapter 13. Explained why we aren't happy with the way we are being represented. No, I haven't told our current attorney about our consultation appt. Either way, we can't work with the current one!!

[justbroke]

Ok, is that our leagal right to request a suspension and is our lawyer required to follow through with it? What if she doesn't?

I don't know if it's a right, but it's certainly available to you if you show need.