Loss of income after filing

[trigabyte1]

Hello,

My wife and I filed pro per in April. We're approaching our 341 and I just got some bad news - my employer is cutting my pay by about $350-400 a month due to financial difficulties facing the company.

Should I look to amend our Sched. I (Current income) & J (Current expenditures) to reflect this change? We are looking to reaffirm a car loan that, given this change, would probably be untenable.

My thoughts are that this may be a blessing in surprise. The lender gave a nice reaffirmation offer, but with this drop in income we may be able to get something better (after all, the judge won't approve the reaffirmation if we're negative).

My employer has left open the possibility of an increase in income, but in a letter to me stated that it wont' be in the near future (6+mos).

Obviously, I intend to notify the TT & UST of the change, as well as the secured creditor. I'm just curious what people think of amending the filing?

Thanks for any help.

[justbroke]

Is this a Chapter 7 or a Chapter 13? Regardless, the forms are really for the day that you filed, with Schedule J looking forward.

I would say that if you filed a Chapter 7 and already qualify for it, there's no need to go amend the schedules (Schedule I/J). If you filed a Chapter 13, this could be important as to your Plan and payments. For a Chapter 13, I'd immediately amend the schedules (Schedule I/J).

If you should get into some issues later with the United States Trustee (UST) on your discharge, and assuming it's a Chapter 7, just amend then. I don't think it's a big issue right now.

That's just my thoughts.

[trigabyte1]

It is a 7, so no issues regarding a repayment plan. I'm going to notify the TT just to cover myself and let him know. I think I'll also notify the secured creditor (and provide proof) to advise them of the change as well. Obviously, when I would complete the reaffirmation agreement I would have to list it as a hardship as it would leave me negative under the current terms.

[justbroke]

The reaffirmation agreement paperwork has boxes where you put your current monthly income and if it changed, you provide an explanation. You will probably not have the reaffirmation approved, but it's worth a try. Maybe the lender will let you ride-through.