It happened to us....Hubby was let go due to the 'economy' per his employer

[tammygirl1]

So my husband is a manager of an oil change franchise. His boss's profits have dropped over the last couple years but spending habits haven't. So his solution 3 weeks ago was to offer my husband his job at a 10k a year reduction. Because he would get no unemployment if he declined (same as quitting), he sucked it up and continued to work for the guy. Then Friday, his boss gave him his last check and said he was still 'too expensive' for the company!! He was expected to work 48 hours at the reduced rate of 40k a year....and still too expensive??? So, long story short, we are potentially in a world of hurt. I made the bulk of our income but even with unemployment we are in trouble. Our plan is set close to 0% due to priority/secured claims. We are also going to try to get child support reduced since we have 48% custody and his ex makes more than my hubby prior to reduction...but who knows...I have heard they jsut continue to make you pay the amount but court order you to find a job...no duhhhh! Sorry for the vent..its just I am really scared.

[andy158]

Sounds like the owner of the buisness isn't far behind you!! You are not alone in the "non-recovering" economy. I know of more people who have lost their jobs in the past six months than when they admitted we were in a recession. I'm sure California's median income is more than what you will be making. Sounds like a good candiate for a ch7 conversion. Contact your attorney.

[tammygirl1]

I would go for a conversion in a second but 2 things would stand in the way..I may still make too much money on my income and almost all our payback is for car, back childsupport, lawyer, and taxes....We have paid down about 11k out of a 44k base plan with approx to 45 months left. I pay 737 a month. My base plan was worked out with the thoughts that the trustee takes 10%. She has been taking about 5.6% though. My secured/priorities originally amounted to about 37000 but after IRS submitted their claims it went down to about 35000. When I crunch numbers going forward, I have 24,333 that 'has' to be paid and divide that by 45 months, its about 540. Then add the 5.6% for trustee it comes out to be about 570.... I am paying 737 a month right now. Do you think it's resonable that I could get it lowered to 570?....that would definately help out. Our medical is going up starting January and our car ins already went up since start of plan...

[shark66]

You should be talking to your attorney. Right now.

That is the only person who can tell you what the course of action with the Trustee handling your case should be.

Good luck to us all.

[tammygirl1]

Yep. I emailed him 1st thing yesterday and got back to me pretty quickly. He said it all depends on what Hubby gets in unemployment....so we will see.

[IamOld]

tammy I'm thinking with your med going up and this...they "should" be able to lower your plan...

Good grief, I'm so sorry to hear this...any chance of any openings anywhere he could try for??

[BKAttyMI]

If it's all secured debt, there's little chance of getting it reduced. You have to include reduced interest on your auto loans being amortized over time into your plan payments. Let your attorney work it out though and see what happens.

[tammygirl1]

Wow...guess I have to vent! So we get letter from Unemployment Services that Child Services requested that my hubby's benefits be reduced by 25% to pay down the arrears!! We have been paying them within our payment plan. They don't give refunds so unless we reduce the claim we will be overpaying. We only get 450 a week and they want to take 25% of that???? Goodness.

[lrprn]

Oh, Tammygirl.....what a mess. i'm so sorry that you are having to go through this.

Let your lawyer know immediately about the letter from Unemployment Services. Since your husband is making up the arrears through your plan, it's hard to understand how Child Services can ask for more money without violating your automatic stay. Hang in there!

[tammygirl1]

It is crazy how things just cruz along then bam..things start dominoing out of control...I did email my lawyer and he said that he could help research and file a complaint the the bankruptcy court for a fee so hubby went down to Child Services yesterday and its seems to have been worked out! They say that 99% of people pay child support via wage garnishment so they automatically levy unemployment benefits. What they don't crosscheck is for people who pay directly. The letter did say the reduction was because we owed back pay and that is what confused us. Once hubby showed Child Services all the documentation they realized what happened and reduced the 25% down to what our current monthly amount owed is and we no longer have to write a check each month (as long as he is getting benefits). If this actually goes through we won't be any worse off than before.

[MSbklawyer]

Businesses like oil changes and full service car washes are going belly up by the dozens. They do the things people could do themselves but were too busy/lazy to do when they had money. Well, now they ARE doing those kinds of things themselves. Lawn /landscaping services are hurting too.

You know who is doing great though? Businesses that fix things; make things last longer. Like shoe repair shops and appliance repair shops and auto mechanics. They're making off like fat men because people are fixing things instead of throwing them away and buying new.