Help! Chapter 13 ??'s!!

[hopefullori]

Hello everyone -

I'll be brief - I am 48 months into a chapter 13 with a payment of $1685 per month -

I was current with all my payments until December, when due to my husband's stroke, work cut his hours and pay by 50% -

I do not have that kind of money anymore - and my attorney does not think I will pass the means test -

My mortgage is $3950 (up $500) from the beginning of the chapter 13 and is about 51% of my new income.

I am scared, can someone tell me what the worse case scenario is with a Chapter 13 dismissal - if I don't qualify to convert to 7?

Thank you - I am in a real panic here.

[DeadManCrawling]

I have little practical experience with 13's, but hope others will read and help when I bump this up the forum.

I think your attorney can argue that the changes in your situation are so severe as to merit a conversion and argue that circumstances going forward make it the best option. A modification seems like it should be a real possibility, but I don't know how it works. I mean, 48 months in? You were headed for success until the stroke-I am very sorry to hear about that, too. It would seem, with only 12 months left, SOMETHING could be done.

I suppose, at the worst, you would be dismissed. Then wait six months and file CH 7. Just seems so damn useless, though, after all the effort and good faith you have shown.

[forgotten]

Do you make enough to be able to pay anything toward the 13? If so, file to ammend the plan.
If not, I would try for a hardship discharge citeing the stroke and serious decrease in income.
If that fails, convert to a 7 claiming extenuating circumstances - once agian the stroke and decrease in income.

I would do anything I could to not let it get dismissed.

[catleg]

You've had a material change in your circumstances. The lawyer should help you amend your plan or else get a hardship discharge.

[hopefullori]

Thank you everyone - I did contact my attorney - there will be some to pay to the Chapter 13 - but certainly not the original amount - I have paid the secured clam (mortgage) and the unsecured are now at more than 50% paid.

She said she would "work" the numbers, but did not sound very hopeful about any changes to my current plan - I am going to push her for a "hardship discharge" - but what are my chances - who decides the trustee or the judge?

Thank you for giving me some peace of mind -

Lori

[hopefullori]

Hello everyone - I am now a daily devotee of this forum - thanks for all the GREAT advice -

I registered for the PACER service - which I recommend doing sooner rather than waiting 48 months like I did!

Want to know the icing on the cake? I reviewed my initial Schedule J that my attorney submitted in 2005 and it was LOADED with errors - no wonder my payment was so high and I had a 60 month 100% plan.

I suggest everyone review every line of those schedules for errors - my oversight might have cost me YEARS of needless money.

Lori

[forgotten]

I suggest everyone review every line of those schedules for errors - my oversight might have cost me YEARS of needless money.

Lori

Didn't you have to sign your papers before they were filed?

[hopefullori]

Interestingly enough, my attorney had me sign one paper - that he told me covered all the rest of the documents I needed to sign - I didn't know any different, plus I had a newborn just out of ICU and was letting my attorney handle it -

MY mistake - yes.

[forgotten]

Interestingly enough, my attorney had me sign one paper - that he told me covered all the rest of the documents I needed to sign - I didn't know any different, plus I had a newborn just out of ICU and was letting my attorney handle it -

MY mistake - yes.

It amazes me that attorneys will have people sign papers under penalty of perjury that all the information is true and acurate without being able to read it all.
And yes, you had much more pressing matters going on. You hire someone to help you with the law and keep everything on the up and up and they pull stuff like that... Live and learn I suppose.