Lost job

[tcauvet]

I'm almost at end of bankruptcy (240 days left), and I got let go from my job. The unemplyoment isn't going to amount to enough to pay my bills and the bankruptcy payment. Does anyone have experience with this? What can I expect to happen? What are my options?

[justbroke]

You need to immediately contact your attorney. The attorney will assess the situation and determine what to do. This could include seeking a forbearance of your Chapter 13 payments, seeking a hardship discharge, or seeking a conversion to Chapter 7. If you "needed" the Chapter 13 for a specific reason, such as pay arrears on a home, or to pay tax debt, then you'll need a really good strategy.

Typically, Trustees will readily allow a deferment of payments for a few months to see if you get a new job. Then your attorney would file a notice of conversion! How that process specifically works, is District specific; with differences being around the actual process. (For example, some Districts require a new "Means Test" on Form B22A.)

I did a similar thing and converted. It was not due to job loss. However, I qualified for Chapter 7 at the time I filed my Chapter 13. I had filed Chapter 13 to save investment property.

[Flamingo]

The employer I was working for when we filed went bankrupt. I was out of a job and we just started our Chapter 13. I immediately contacted our attorney upon learning of the bankruptcy and was advised to get a job as soon as possible, which I did but at $6,000 per year less (note that it was stated in our BK papers that we had to make our Chapter 13 payments even if there was a job loss). Our attorney worked to have our Plan modified due to the income loss. If I was unable to get a job, we probably would have lost our home. Work with your attorney who will advise you what is best for your own personal situation.