Unemployment

[km2654]

I am losing my job. I will get a severance paid over 1 year. The severance plus unemployment will be about $800 more than I make now. My bankruptcy is confirmed.

Will the unemployment be exempt from the bankruptcy? If not do you think they will modify my plan for the year? After the year if I have not found another job I will only have the unemployment income. I'm in California.

I of course have a call into my attorney but have not received a call back yet. Thanks

[optimistic1]

Unemployment income is not exempt. Hardship discharge might be available, or deferment.

[Gordon C]

Since the unemployment income will probably be finite ( unless the government continues giving extensions), I would think you should be able to negotiate this down to a Chapter 7....

Unless you have a house and a lot of assets to protect, I'd go for Ch.7.

( Years ago, when I filed for BK, I was forced into a chapter 13 plan for 3 years 'cause I made too much money....If I filed now, I'd definitely qualify for a Ch.7. This economy has been hard on me...)

[klandsb]

Yes at the previous posted said maybe you could convert to a chapter 7 or have your payments lowered... Only your lawyer can tell you for sure and sometimes there just not very quick at responding... Call everyday like I did...It took 8 days but he did call back...

[km2654]

I finally got an email back from my attorney. What I told her was that without unemployment I will bring home less but with it I would bring home more for 12 months. Her one sentence reply was "Unemployment is not a problem." So I guess I don't have to worry about it.

I can't convert because the only thing being paid are the attorneys fees.