Questions on reduced income

[mylife]

I informed our attorney that our income decreased by over $15,000 last year and his response was that our payments cannot go any lower and still pay out what we have to pay out. Is the plan base ever adjusted? Do we have any options for reduced payments besides converting to a 7?

Thanks

[SMinGA2]

It depends on why you're in a 13, and what amounts must be paid. For example if you're now paying 0% to unsecured, and all your plan payments go to atty fees & trustee fees & secured debt (cars) & mortgage arrears, then it would not be possible to cut your payment amount unless 1) you could extend the # of months in your plan or 2) let go of the house and/or cars. #1 is not an option if you're already at a 60 mo plan.

[mylife]

Thanks for the response Staci. A majority of the payments are going towards secureds, mortgage arrears and ttee fee, unsecureds are getting a small percentage and we are also in a 60 month plan. With the reduced income, we are in the process of doing a mortgage modification which will help.

[Floridagail]

If it were me, I would consider if it is worth keeping the house, at this point having less money. That is more than 1000 a month decrease. I hope you are not upside down under water. Hopefully your attorney is guiding you in the right direction. I personally feel the attorney want to keep the plan going to get their money.

[mylife]

Hi Floridagail, our house is underwater! No real guidance there and we would prefer to keep our house. We are waiting to hear on a loan mod which would help.

[Floridagail]

Hope it works out for you. Our daughter started a plan 13 and then her husband got laid off, so they cancelled it and now 2 yrs later still in their house not making the payments looking for work. The attorney suggested they file 7, but so far noone has done anything on the house or cc debt.