Modifying Chapter 13 plan payments due to loss of employment

[rulefollower]

We are in Chapter 13, 100% 5-year plan and I have a question about payment modifications. We have a little over a year and a half left before we are discharged. My husband lost his job in July and we asked for a modification to our payments. We were granted a modification from 2700 to 2000. However, this month we were told to 'tighten our belts' because the payments were going back to 2700. My husband is still unemployed and this puts a strain on our budget. What are our options?

[Pandora]

what percent is going to secured vs. unsecured?

any items you chose to keep vs. surrendering (ch. 7 liquidation test)? You may have to turn something over in order to bring down your payment to what your income is currently.

Hubby getting unemployment?

You should call your lawyer and discuss all of this with him/her, and they will guide you in what your trustee usually will do in instances such as yours.

[freeme0215]

Hello

I am in a 36 month pay back plan. I am scheduled to make the 9th payment this month. I am on Long term disability getting $3,200 a month.I was required to file for Social Security disability by the LTD company.

Today I found out that I have been approved for SSD. This will result in a difference of $1,300 a month that my monthly income will be lowered. Instead of 3,200 a month, I will now be getting $1,900 a month

My payback percentage is 2. I have the mortgage payment of $1,043 in the BK payment I make to the trustee. My total per month CH 13 payment is $1,527.

How do I handle this serious loss of income?

I am also starting a loan mod(I am waiting for the paperwork from the mortgage company)..I was hoping to lower mortgage from $1460 to $1043, now $1,043 is too much per month..what a nightmare

Can I have the Ch 13 modified?
Can I file a Ch 7? ( I do have a HELOC 2nd mortgage)
Condo is upside down by $60,000

Thanks

[jetsfan2010]

Condo upside down by 60k - have you thought about walking away from it?

[freeme0215]

I have a second mortgage and I was told that not completing a chapter 13 would bring the 2nd mortgage to be owed..is there a way around this??

Thanks
Marlene

[Pandora]

Hello

......Instead of 3,200 a month, I will now be getting $1,900 a month

My payback percentage is 2. I have the mortgage payment of $1,043 in the BK payment I make to the trustee. My total per month CH 13 payment is $1,527.

How do I handle this serious loss of income?

I am also starting a loan mod(I am waiting for the paperwork from the mortgage company)..I was hoping to lower mortgage from $1460 to $1043, now $1,043 is too much per month..what a nightmare

Can I have the Ch 13 modified?
Can I file a Ch 7? ( I do have a HELOC 2nd mortgage)
Condo is upside down by $60,000

Thanks

I'm sorry you're having such a difficult time. Unfortunately your only option is to let the house (1st & 2nd) go back to the bank. There is no way to afford a house payment that is 55% of your income on top of everything else. You should call your attorney and let him/her know the situation you're facing and see what can be done. Might just be that you covert to a Ch. 7.

Good luck to you.

[forgotten]

Hello

I am in a 36 month pay back plan. I am scheduled to make the 9th payment this month. I am on Long term disability getting $3,200 a month.I was required to file for Social Security disability by the LTD company.

Today I found out that I have been approved for SSD. This will result in a difference of $1,300 a month that my monthly income will be lowered. Instead of 3,200 a month, I will now be getting $1,900 a month

Are you sure about that? I obviously do not know your LTD plan, but usually they require you to apply for SSD then your payment from them is reduced by the amount of SSD. So if you get $1,900 from the SSA then they would only pay you $1300/mo in LTD now. Your end result is the same however, $3,200/mo. $1900 from SSD and $1300 from LTD. Obviously your plan may vary, but just wanted to give you a heads up so you can be sure.

[lrprn]

I have a second mortgage and I was told that not completing a chapter 13 would bring the 2nd mortgage to be owed..is there a way around this??

If you filed Ch 13 in order to strip your second mortgage, then finishing the 13 is the only way to make that possible. Another option? Talk with your lawyer about surrendering the house to get rid of both mortgages and what impact that might have on your 13. It's possible you might even be able to file Ch 7.