Does BK change if you retire before completion?

[Promise]

Five year plan. Paid 40 payments so far. Had been planning to retire end of 2014, which would be 1 year shy of BK completion. If 401K is converted to annuity or such to supplement SS and pension (in order to continue to pay out BK at rate agreed on) does it make the 401K money an asset instead of being protected?
Would our payment reduce since income will be reduced?
Have put in call to our lawyer, but no callback yet....

[BNKRPTinNC]

Can't answer specifically as to 401k but I did retire while in my 13. Had about a year and a half to go in the 13 and retired under civil service. Wife also went on disability shortly after. I did nothing other than make my plan payments. Income went down some $10k per year but actually had more spendable income. I figured as long as I could make the payments and was not making more per year than when we initially filed nothing needed to done. We were fortunate in having a plan that allowed some savings from the beginning so the drop in income was not so much of an impact that we couldn't make it. I had a trustee that was pretty much hands-off so my main goal throughout was to keep the status quo.

[Promise]

Thank you for your reply. We will actually make less, but do not want to risk the retirement savings.

[LadyInTheRed]

If you have a decrease in income you can petition to modify your plan. But, it may not be worth the cost and scrutiny to do so.

[Promise]

LITR, that was my thought too. We were planning to stay with same payment. I hate to even call to ask questions but don't want to covert the 401K and then the trustee claim it.

Toobee, you surrendered a home in your BK, right? I wonder if somebody who has stayed current on mortgage payments would qualify for a mortgage earlier.

[suzyq1985]

I retired a year before completion of chapter 13. I kept making payments. The only thing that changed was the wage order was cancelled and I made payments directly.

[BNKRPTinNC]

LITR, that was my thought too. We were planning to stay with same payment. I hate to even call to ask questions but don't want to covert the 401K and then the trustee claim it.

Toobee, you surrendered a home in your BK, right? I wonder if somebody who has stayed current on mortgage payments would qualify for a mortgage earlier.

FWIW, my mortgage was paid by the trustee the whole five years so never a late payment. A quick inquiry with a Quicken rep and was told that we needed to wait a year, after discharge. But that was in regards to a refinance for a shorter term and better rate. While in a 13 it seems as if you are in financial limbo where things are being paid but nothing is considered. You would think that if anything is being paid outside of plan, on time and in full, it would indicate something towards your credit worthiness.

Ditto what suzyq said on the payment part.

[LadyInTheRed]

LITR, that was my thought too. We were planning to stay with same payment. I hate to even call to ask questions but don't want to covert the 401K and then the trustee claim it.

Toobee, you surrendered a home in your BK, right? I wonder if somebody who has stayed current on mortgage payments would qualify for a mortgage earlier.

This is odd. The above is what I meant to post in another thread. It looks like I somehow ended up editing Promise's post instead of posting it where I intended. Sorry about that!