What would you do?

[dadof3]

Just seeking advise... I have been in a chapter 13 almost 36 months, 12 months ago my spouse lost her job and we have been able to still make payments due to unemployment income, payments are 2100 mths and includes 2 vehicles and house note, we are in 100% payback plan. Now unemployment will stop in may and income for our family will be 57k, lawyer is saying unable to reduce payment and my income alone will support payment, in reality after taxes insurance and loan for 401k i am left with 400.00 bi week, which does not cover basic living expensies and food. I am told still too much income for chpt 7 and i will have to surrender to lower payment, problem is that even if surrender something i still cant afford payments, i am looking for any feedback you guys can share, ps i am in eastern district in mi if that helps. Thanks!

[dadof3]

bump for responses

[keepinitreal]

From your name "dadof3" I'm assuming your family size is 5. Check what the median income in your state is for your family size. In my state, the median income for a family of 5 is about $80k, so you would probably be eligible for a chapter 7 as soon as your 6-month lookback is under $80k.

If your attorney refuses to help you convert to a 7 or lower your chapter 13 payments after you've lost your wife's unemployment income, you'll have to take some actions yourself. You could contact a new attorney and get advice, or maybe even contact the trustee.

It's a good thing you're being proactive and preparing for your loss of income in 3 months. Good luck!

[woeisme]

I think the problem here is that the poster is trying to protect assets, and that is why they must pay the higher payments. Without knowing more about the story, can't really offer any helpful advice. Lawyer must have some rationale for saying can't go CH 7, poster says is because of income, but not knowing state or family size, can't say if that is the case. Not knowing what non-exempt assets are involved or those items, that's probably why you haven't gotten any responses before.

[dadof3]

thanks for the replys, i would be wiling to surrender all secured assets, 2 cars and home, my family size is 5, would anyone know what median income is for family of 5 in mi, hope this helps i need all the advise i can get!

[forgotten]

thanks for the replys, i would be wiling to surrender all secured assets, 2 cars and home, my family size is 5, would anyone know what median income is for family of 5 in mi, hope this helps i need all the advise i can get!

The median income for a family of 5 in Michigan is $83,212

[sofarsogood2]

If median income for 5 is over 83K and your income is 57k, I think I'd be calling my attorney, stating that fact to him and asking him if he perhaps "misunderstood" your question. Sounds like he maybe didn't want to be bothered. You should be able to adjust your 13 payment to account for loss of income, then after the look back time goes by, convert to 7 if you still want to. If he is still uncooperative, I might call the trustee. Your circumstances have changed and the payment CAN be adjusted to account for that.

[secondtimer]

How about investigating a hardship discharge?

[dadof3]

what is hardship discharge?

[secondtimer]