My be locked out of present job. What could happen?

[andy158]

The contract with my employer expires on June 30. We voted down the first contract nearly unanimously because of the simply outrageous demands by the company although they posted record profits for the first quarter this year and are projecting a record year. They are a major material supplier for a major airline manufacturer. They refuse to negotiate further especially over health care issues and have a cotingency plan to lock us out and replace us with salary and non-union workers from other facilities. A lock out will take all insurance and benefits away from the employees affected. Our only salvation is qualifing for unemployment.

My question: The entire amount of our plan payment is taken from my bi-weekly income. With my wife's income we will not be able to keep up with house, second car and insurance payments. Unemployment will just keep food and utilities going. We have two children at home. In the event a lock out occures I know I will have to contact our attorney. What is the usual protocol of primary job loss in a 13?

[justbroke]

When in a Chapter 13 and financial issues arise, you immediately contact your attorney. Your attorney will need to see if your plan is even feasible at the point of the financial change. From what you're describing, you wouldn't even be able to make the mortgage payment and that would be bad. You will need to review whether letter the house go, or dismissing your case, is the best thing.

Typically, why you're going through this, the Trustee may allow a forbearance of your payments for several months. Then you'll need to decide if the income is going to be replaced -- making your plan feasible again -- or changes need to be made. Those changes could include surrendering secured property. If, however, the cost of ownership of your home (mortgage, tax, insurance, repairs) is about equal to the rents in your county, you may have more difficulty. Converting to Chapter 7 may also be an option, but it's not something that would save your home if you can't afford it with only one income.