What Would You Do:

[Loveandlight]

We filed a few months ago. We are broke. Every month. We literally have $22 in the bank until Tuesday (Happy Mother's Day to us, right?!) and several bills we can't even pay.

Clearly increasing income is a great option (working on that around the clock...) but meantime:

I'm staring at bills on my desk that we have no hope for catching up on (medical plus water plus trash) and have asked our attorney to help us get a suspension on our payment for three months so we can try to catch up.

He hasn't written back. This was a week ago. Do we just not pay? Do we send copies of these to the Trustee and let THEM know when we can start paying again?

In order to convert to CH 7, do we need to file a new means test? Is this advisable, especially if we are thinking of surrendering a car?

Any help is so appreciated.

[HHM]

Okay, I assume you are in a chapter 13.

1. Why are you chapter 13 in the first place?
2. My guess is, it is not the little expenses that are hurting, but a big expense, your housing or car.
3. Yes, you do have to do a new means test to convert to 7, you need to show you qualify for 7.
4. Unless something has "changed" since your plan was confirmed, it is unlikely a suspension in payments will be granted. If you really are that strapped, sounds like you need either a modified plan, change your priorities and convert to 7 (assuming you can), or really start thinking outside your comfort zone when it comes to slashing expenses.

I know it is hard. The goal of bankruptcy is a bankruptcy discharge. Whether you get that through chap 13 or chap 7 doesn't really matter, but you need to get a discharge.
It is terribly difficult to downsize. The success or failure of a chapter 13 generally comes down to your ability to budget and spending discipline.

[tobee43]

i remember when we were looking for an atty to file for our bk. it was remarkable how many were steering us towards a chapter 13 with only ss and exempt pension as our sole income. (we were also collecting unemployment at the time).

i knew once unemployment stopped there was no way we could manage a 13, and it would have ended us costing more in legal fees etc. additionally, and MOST importantly, while it is imperative that one learns to budget and live within their means, one can ONLY budget when there is enough money to budget. otherwise it sets one up to fail.

it sounds like to me that either your financial situation must have changed and you can no longer meet the budget set up for you, or it was miscalculated.

we have many successful 13's on this forum and it has worked well for so many and they are not back on their feet and doing great. however, some just can't. the first thing i would do, is go to a few free consults to see if someone may feel you now qualify for a 7, it won't hurt. i would go to someone other than who handled you 13, but that's just me.

best of luck!

[NJLawyer]

Some attorneys and trustees set up budgets that are just not realistic. You might want to share yours with us, as the experienced people here are pretty good about critiquing budgets. Is the problem that you had a sudden medical issue since filing? We need more info to help you better.

If you don't get this budget straightened out by a realistic reassessment of your true dmi (either you underestimated your true bills or can't stop spending more than you theoretically should be) then even more income may not help you... it may just increase your dmi and get taken.

[LadyInTheRed]

Loveandlight, because you say that your attorney has not written back, I assume you sent an email. I suggest you call your attorney. If he isn't available, tell the person who answers the phone that you don't think you are going to be able to make your plan payment and that you need to talk to the attorney about a suspension of plan payments or plan modification. Ask when you can expect a return call. If you don't get a return call by that time, call again. Be persistent.

As already stated, we need more info to help you. I see from your other posts that you are in a 60 month plan and have a payment of $420, which includes about $70 in attorney fees.

How much is the payment on the car you are considering surrenderng? Are the car payments being made by the trustee or do you pay them directly?

Is there anything else included in that payment other than unsecured debts? Any payments on secured debt or for non-exempt assets?

Are you in a 60 month plan because your income is above median or because it needed to be that long to propose a feasible plan? Have you had a change in income since you filed?

It sounds like you may have medical expenses that are higher than budgeted for in your plan. Is that true? Check line 7 of your schedule J to see what was budgeted.

[Pandora]

are you confirmed yet or are you still waiting?

If you are only a few months in and are staring at bills you cannot pay - then your plan wasnt feasible to begin with, and your attorney should've told you that. Any way you can convert?