Suspending Payments

[Dj1995]

How long can payments be suspended at one time for the loss of income?

[AngelinaCat]

Are you talking about your payments to the trustee? If you are, you need to get with your attorney asap in order to find out exactly how your trustee and your particular District handles these matters.

[Dj1995]

Yes - talked with the attorney and they are filing a motion to suspend payments, I believe they said for 2 months. I was just wondering though what happens after the 2 months?

[AngelinaCat]

I am not a Ch13 person, but from what I have read, your suspended payments will be added to the end of your plan. You may need to amend your plan to make lower payments, or you may need to consider converting to a Ch7.

Hopefully someone who has been in this position will chime in.

[justbroke]

Yes, the payments may just be added as a balloon to the end of the plan, or the Trustee may want installments paid over a specified period which may be less than the remaining months in the plan. For example, the Trustee may allow a suspension, but then to pay back the 2 months over the following 6 months, in addition to the regular plan payment.

It all depends on how the Trustee and your attorney work it out.

I will add that if this suspension doesn't work -- you can't meet the terms of the Plan due to loss in income -- then the Attorney can seek to convert your case to a Chapter 7. If you really needed a Chapter 13 to save property, then you'll have no such luck. The problem with a Chapter 13 is that you must be able to fund it and have regular income.