Should I stop paying on my chapter 13 plan?

[tbesse001]

It has been a long road. I filed for Chapter 7 in August 2005 and after all was said and done it became a Chapter 13 at $1200 for 5 years. i have paid thru the court all of the secured claims and only have 3 left -- Amex, Roundtree Funding and ECast. My problem is that i have had unexpected expenses over the last three months and i am now two months behind in my payment to the court. i am thinking that i might just contact these three creditors to work out a plan since i cannot afford to pay $1200 per month. i still have til March 2011 in the plan. Any thoughts from anyone. even if i have to pay interest over a longer period of time. My husband wasn't involved in the filing of the bankruptcy but the court managed to take into account his income for me to pay back my debtors. he has had to get another car which is one of the reasons i'm behind. again, any suggestions is appreciated. thanks from Teri in Florida

[MSbklawyer]

It has been a long road. I filed for Chapter 7 in August 2005 and after all was said and done it became a Chapter 13 at $1200 for 5 years. i have paid thru the court all of the secured claims and only have 3 left -- Amex, Roundtree Funding and ECast. My problem is that i have had unexpected expenses over the last three months and i am now two months behind in my payment to the court. i am thinking that i might just contact these three creditors to work out a plan since i cannot afford to pay $1200 per month. i still have til March 2011 in the plan. Any thoughts from anyone. even if i have to pay interest over a longer period of time. My husband wasn't involved in the filing of the bankruptcy but the court managed to take into account his income for me to pay back my debtors. he has had to get another car which is one of the reasons i'm behind. again, any suggestions is appreciated. thanks from Teri in Florida

Why not try to convert back to a 7 if your income has changed that much?

[rrockinggramma]

man to come so far and be so close THose 3 creditors will and have the right to go back to 2005 and add ALL interest due, penalities and fees, which could triple the amount you owe.

Perhaps your attorney could look at a modification of your plan to help you get it finished? Or now perhaps you qualify for a conversion to a chapter 7 but to just throw in the towel now I think would set you back to 2005

[tbesse001]

I don't think i can afford to pay the attorney. since these are unsecured debts and if they decide to go back to 2005 to collect whap happens then. would it be considered a bad debt and they write it off?

[lrprn]

I don't think i can afford to pay the attorney. since these are unsecured debts and if they decide to go back to 2005 to collect whap happens then. would it be considered a bad debt and they write it off?

These three creditors will not write off the debt. They are going to add on four and a half years of late fees and penalties, and then pursue you relentlessly to get what you owe them again.

Do you understand that if your 13 plan is dismissed now, unless your plan was set up to pay your creditors that filed claims 100%, you'll have to pay all your creditors the difference between what you did already pay and the total amount that was owed? That those creditors are going to pile on late fees and penalties on top of what you owe? Do you understand that you'll again owe every single one of your creditors that didn't file a claim what you owed them on filing day plus late fees and penalties too?

If you can't afford your current Ch 13 payments, you certainly can't afford to take on a huge amount of resurrected debt and try to pay it off - it's going to crush you.

You MUST do whatever you have to do RIGHT NOW to either get your Ch 13 plan amended or convert your 13 to Ch 7. Does your lawyer know you are two Ch 13 payments behind?

Frankly it wouldn't surprise me if your trustee has already sent a motion to the court to have your case dismissed after two missed payments and no communication from your lawyer or from you.

You've come too far to fail now. There is a way out, but it's not to do nothing and allow yourself to be dismissed. Go talk to your lawyer. Find out how much it will be to amend your plan or convert. Don't wait. Don't be passive. Only you can save yourself here. Get going!

[tbesse001]

Thanks everyone for your advice. I don't know what i was thinking. to come so far and then go back. i will contact my attorney tomorrow. i had called him last month to let him know that i was going to be late.

[lifelesson]

looks like lprn is a great cheerleader for you. I want to also cheer you on. You are to close to fall off the train.
I think you can, I think you can, [B]know you can![/B]