Just got hit with motion to dismiss

[mrdav]

I lost my job a little over a year ago. Was unemployed for 3 months then got a job for significantly less. I am just shy of 2 years into my repayment plan and am feeling overwhelmed. I'm obviously failing at this but I am not spending like I used to...I've made big progress but the monthly payments are killing me. I'm ashamed to admit to taking out 2 installment loans to cover shortfalls and now it's going to sink me. Paid one off...almost paid the other off. Was making trustee payments when I could but not on time. Now I am 3 months behind and they filed a motion to dismiss. I was working with my lawyer to get a modified payment plan set up but got hit with this today.

I'm in a total panic...I'm working 2 jobs and living like a pauper, this past year has been hell (A/C died and there is no money to fix it. House is starting to fall apart and I have no money to fix anything). What should I do? Can I borrow money from family to pay the shortfall? How do I know if I qualify for a 7? What are the pitfalls of converting?

Mortgage was modified last year and arrears added to the new loan. HELOC was stripped and then I got a forbearance from the bank. Car is part of the trustee payment but ready to dump it if I have to. non secured repayment down to .68%. Behind on HOA by $3,000 and Trustee by $1,700.

Have a meeting with the lawyer end of the week to fight the TMD and see if we can still file a MOMOD but I understand that the Trustee usually holds sway over the judge.

It's hard not to feel like a loser...but I have to keep fighting. I just don't know how much more I can take. Any advice?

[dmc-2008]

I dont know what to say but that you are in a pickle!! Just see what the lawyer says! Good luck!!!

[LadyInTheRed]

You usually aren't allowed to borrow during a Chap 13 without trustee approval. So, a gift from familiy may be a better option to catch up. You can always give a gift to your family member after your BK.

But, catching up may not be your best solution. I would start the meeting with your attorney by asking about converting. Or, if your income is two high to qualify for a 7, you can let the Chap 13 be dismissed, quit one of your jobs and file a Chap 7 later. Your attorney can help you determine the best option.

[mrdav]

thank you...I'm starting to think that a 7 is the way to go. I was hoping to avoid it but being this broke and not successfully keeping up with payments tells me I need to go back to the drawing board. Losing my well paying job has caused a great deal of upheaval and I need to get my finances under control and I'm hoping a 7 can give me a fresh start.

[dmc-2008]

I hope so too!