Job loss?

[wikkibird]

So, I've emailed my lawyers office a total of FOUR times regarding my question and I have yet to get an answer, so I'm hopeful you fine folks might be able to give me some insight.

Here's my situation: My job is part-time and it's a county job and not very secure. There is a potential I could lose my part-time position (I don't even work 20 hours/week sometimes) in the next few weeks. My question to the lawyer is how much would our payments change (we pay our first payment of $405 next week) if I only bring in $500/month (I got a web design client) instead of the $800-$1000 I do now? Our daycare cost would reduce down to only two or three days per week (so, at the most $360 versus $440/month), so that I could work from home and hopefully build up my web design business. I'd like to make up the difference of $500 I could be potentially losing, but I don't want to count on it.

I have a contract signed for at least $500/month with this company, so I do have that guaranteed income at least, but I really need to know how this may affect our Chapter 13 payments! Does a trustee dismiss for job changes/loss? Is that a stupid question? What if I have to quit because of a sudden event? What are the terms for adjustment or conversion to a Chapter 7?

I suppose I could just tell the paralegal that I've lost my job, please recalc with this figure for income (for me, hubby's job is fine) and this cost for daycare and just leave it at that. *sigh* Our 341 meeting is on the 24th and I'd like to know before then. LOL

[espo1357]

So, I've emailed my lawyers office a total of FOUR times regarding my question and I have yet to get an answer, so I'm hopeful you fine folks might be able to give me some insight.

Here's my situation: My job is part-time and it's a county job and not very secure. There is a potential I could lose my part-time position (I don't even work 20 hours/week sometimes) in the next few weeks. My question to the lawyer is how much would our payments change (we pay our first payment of $405 next week) if I only bring in $500/month (I got a web design client) instead of the $800-$1000 I do now? Our daycare cost would reduce down to only two or three days per week (so, at the most $360 versus $440/month), so that I could work from home and hopefully build up my web design business. I'd like to make up the difference of $500 I could be potentially losing, but I don't want to count on it.

I have a contract signed for at least $500/month with this company, so I do have that guaranteed income at least, but I really need to know how this may affect our Chapter 13 payments! Does a trustee dismiss for job changes/loss? Is that a stupid question? What if I have to quit because of a sudden event? What are the terms for adjustment or conversion to a Chapter 7?

I suppose I could just tell the paralegal that I've lost my job, please recalc with this figure for income (for me, hubby's job is fine) and this cost for daycare and just leave it at that. *sigh* Our 341 meeting is on the 24th and I'd like to know before then. LOL

If you can do a 7, then do a 7.

That is standard, I think.

I am not an expert on this, but when I had a job loss, I should have done a 7, but the scam mortgage company gave me the HAMP when I landed a job, and then I was in a 13 before I knew what the hell happened.

Now, I wish I did the 7.

You should qualify now that you have a job loss.

[lrprn]

First, get off email.

Call your lawyer's office and ask for an emergency appointment because you've been told you could lose your job in a few weeks. Go to the appointment and discuss what can be done if you do lose your job.

While you are there, ask for a quick rework of the Means Test without your part-time income to see if you can qualify for Ch 7. If it looks like Ch 7 is a possibility, then work with your lawyer to figure out how long it will take to drop your six-month look-back income under the median income for your state and family size. When that time comes when you can safely convert to Ch 7, do so.

If you can't qualify to convert to Ch 7 even with the job loss, then ask what the decrease to your monthly payment may be and inform your lawyer to be prepared to file an amended plan.

If you end up not losing your job, then you continue on as you are now making your 13 payments on time every month.

[wikkibird]

Well, I have called as well but it's a small office, but he's one of the best lawyers for bankruptcy, so... Email is actually faster, not sure what the hold up is until they are just super swamped. It sounded like when we were in their the day of our filing, he told us we were just over the median income (because of my side jobs to try and help bring in money, cue the irony!), so perhaps not that long! Thanks for the help, hopefully I'll get an answer back today!

[despritfreya]

There are too many factors here to answer your question correctly. If you are not getting a response to the e mail, set an appointment to meet with the attorney.

Why are you in a 13?
Did you not qualify for a 7 when you filed?
Are you trying to save a home or some non exempt asset?
Are you trying to pay taxes, a vehicle, back support or something else?

You filed a Chapter 13 for a reason. If that reason still exists you need to work with your attorney to, as Irprin states, amend your Plan. You may or may not be able to reduce overall funding depending upon what you were trying to do in the 13. You may be able to reduce plan payments for a while and then increase them to make up the difference. There are just too many variables.

As it sits right now you still have a job. You are discussing a "what if" with your attorney.

Des.

[wikkibird]

We are just over the income for a Chapter 7, but fall within the means test so no tax refund will be taken and neither will any bonuses that we may receive. He said we fall within a rare 1% of people that are just over for a 7. So, no we rent a house and have one paid for car (only worth about $2000) and left out the loan from Carmax for the other car. That's it, we have no other assets. So, the only reason he stated to us that we were put into a 13 was because of income.

[woeisme]

then i say if you can wait 6 months, or however long to get under the median, do it! May be a few tight months ahead, but sure beats a 5 year sentence!