What is the name of your state? Maryland
Mr. Oney,
We are in a chapter 13-5yr plan and have been since December 2002 At that time, our plan was confirmed at $720.00 per month through wage garnishment. However, my place of business closed and my last day of work was Oct. 14th, 2003. I was eligible for severance which I received until May 20th, 2004, which was my last pay from my company. During this time, the full wage/garnishment continued for $720.00 per month out of my severance pay. My company did send the trustee notice a few weeks ago to advise the trustee that due to the plant closing, my employment would end and the last wage payment to the trustee would be May 20th. I am now reemployed but I am now making 1619.98 per month, verses 2161.63 I was previously making per month. This is a different of 541.65 per month. The other problem is that my spouse retired in July 2001. His pension at this time included a supplemental income until he reached age 62 and at the month he would be eligible for 80% of his social security. As of this month coming, my spouse’s pension will be decreasing. His current take home pension is 2167.18. Beginning June 1st, his pension will or should be 1172.23. This is a decrease in pension by 994.95 per month. So in summary, our current chapter 13 plan was set up for total income of 5133.00 per month. Our monthly obligations total was 4404.00. This left us with a disposable income of $720.00 per month which we have been paying since December 02. Also, I just mailed 720.00 money orders to the trustee for June’s payment since I no longer have the other job. So now it looks like our current monthly income after taxes will be as follows: my monthly income: 1619.98, my spouse’s part-time job: 807.30 monthly, my spouse’s social security: $959.20 monthly, (but social security will withhold $1.00 for every $2.00 earned over the limit social security has set which is like $11,570.00 per year), my spouse’s pension: $1172.23. Our new total monthly income will be $4558.71 verses 5133.00 which is a difference of 574.29 per month less. This leaves us with a new disposable income of approx. $145.71 per month. I also explained to my lawyer that our mortgage payment and property taxes went up by $77.00 per month which I can prove.
I have been keeping my lawyer informed of all this and so he is aware. He told us to wait until we my spouse’s pension actually reduces, even though my income is less now, until we try to file for a plan modification. My lawyer told me to just keep making the monthly payment of $720.00 to the trustee until we file. However, I advised my lawyer I am very worried about all of this because our income is much less now and I am afraid of what the trustee or courts will do to us. The reason I feel this way is because our lawyer told me earlier in the year, when he knew my job was over and he also knew from the beginning that my spouse’s pension would decrease, that the trustee/courts frown on anyone trying to modify plans. Therefore, if we absolutely have to modify, we should only do it one time during any plan. My lawyer also told me that even though we will be making much less, the trustee/court does not have to accept any modification and we would either have to continue paying the 720.00 per month ( how I don’t know) or they could dismiss our chapter 13 plan and we would be right back where we started a year and a half ago. However, he did say we have paid money into the plan for 16 months so we would just have to wait to see what happens. I have no idea what any of this means.
Our income has/is changing for the lesser, due to no fault of our own. I tried to find a job making the same monies but to no avail. I am working in the clerical/administrative field without a degree. My previous job I held for 18 years.
Our you able to advise what options we may have? We will be need to try and convert to a chapter 7? If so, what do I need to do or ask my lawyer to do? Of course our lawyer told us we could not modify our plan until all my severance pay has been exhausted. So...after the severance money is gone, I hope to have another job. However, I know for a fact I will not be making nearly what I make now. After searching the job market, I will be making at least $8.00/per hour less. Therefore, we will not have enough disposable income left to continue paying into the Chapter 13 plan. Of course our lawyer seems to believe I will find another job making what I was making, and is frowning upon even considering modifying. We will have no choice but to try and convert to a 7. My spouse's pension, alone, will be reduced by almost $900 in October. Our plan payments are $720.00 for 5 years. Even with just his pension decreasing, we will be short. He is still working a temp job which is already included in the plan payments.
Also, we have 2 mortgages on our home. We are paying both mortgages outside the chapter 13 plan. We have always been current with both mortgage payments. We have never been late or slow paying our mortgages whatsoever. We also have 2 vehicles. One vehicle is 2002 grand Cherokee which at the time we began our chapter 13, we owed 11,600. I believe at the time of filing, the equity in the grand Cherokee was approx. $6000.00. We also have a 2001 sebring which we owe more than the value. Both vehicles are also being paid outside the plan and we have always been current on both vehicle payments. Never late or slow pays on either vehicle.
The only other assets we have is our checking account. We have our household furnishings/goods worth perhaps $2,000. This is all we have.
If we try to convert to a chapter 7, will we lose our home, vehicles, monies in checking, or our household goods?
Do you see any reason as to why we would have any problems trying to modify or convert our chapter 13 plan?
We live in Maryland.
I apologize for the lengthy posting but I am so scared and stressed by all of this.
Thanks for any advice or suggestions. It is greatly appreciated.
Mr. Oney,
We are in a chapter 13-5yr plan and have been since December 2002 At that time, our plan was confirmed at $720.00 per month through wage garnishment. However, my place of business closed and my last day of work was Oct. 14th, 2003. I was eligible for severance which I received until May 20th, 2004, which was my last pay from my company. During this time, the full wage/garnishment continued for $720.00 per month out of my severance pay. My company did send the trustee notice a few weeks ago to advise the trustee that due to the plant closing, my employment would end and the last wage payment to the trustee would be May 20th. I am now reemployed but I am now making 1619.98 per month, verses 2161.63 I was previously making per month. This is a different of 541.65 per month. The other problem is that my spouse retired in July 2001. His pension at this time included a supplemental income until he reached age 62 and at the month he would be eligible for 80% of his social security. As of this month coming, my spouse’s pension will be decreasing. His current take home pension is 2167.18. Beginning June 1st, his pension will or should be 1172.23. This is a decrease in pension by 994.95 per month. So in summary, our current chapter 13 plan was set up for total income of 5133.00 per month. Our monthly obligations total was 4404.00. This left us with a disposable income of $720.00 per month which we have been paying since December 02. Also, I just mailed 720.00 money orders to the trustee for June’s payment since I no longer have the other job. So now it looks like our current monthly income after taxes will be as follows: my monthly income: 1619.98, my spouse’s part-time job: 807.30 monthly, my spouse’s social security: $959.20 monthly, (but social security will withhold $1.00 for every $2.00 earned over the limit social security has set which is like $11,570.00 per year), my spouse’s pension: $1172.23. Our new total monthly income will be $4558.71 verses 5133.00 which is a difference of 574.29 per month less. This leaves us with a new disposable income of approx. $145.71 per month. I also explained to my lawyer that our mortgage payment and property taxes went up by $77.00 per month which I can prove.
I have been keeping my lawyer informed of all this and so he is aware. He told us to wait until we my spouse’s pension actually reduces, even though my income is less now, until we try to file for a plan modification. My lawyer told me to just keep making the monthly payment of $720.00 to the trustee until we file. However, I advised my lawyer I am very worried about all of this because our income is much less now and I am afraid of what the trustee or courts will do to us. The reason I feel this way is because our lawyer told me earlier in the year, when he knew my job was over and he also knew from the beginning that my spouse’s pension would decrease, that the trustee/courts frown on anyone trying to modify plans. Therefore, if we absolutely have to modify, we should only do it one time during any plan. My lawyer also told me that even though we will be making much less, the trustee/court does not have to accept any modification and we would either have to continue paying the 720.00 per month ( how I don’t know) or they could dismiss our chapter 13 plan and we would be right back where we started a year and a half ago. However, he did say we have paid money into the plan for 16 months so we would just have to wait to see what happens. I have no idea what any of this means.
Our income has/is changing for the lesser, due to no fault of our own. I tried to find a job making the same monies but to no avail. I am working in the clerical/administrative field without a degree. My previous job I held for 18 years.
Our you able to advise what options we may have? We will be need to try and convert to a chapter 7? If so, what do I need to do or ask my lawyer to do? Of course our lawyer told us we could not modify our plan until all my severance pay has been exhausted. So...after the severance money is gone, I hope to have another job. However, I know for a fact I will not be making nearly what I make now. After searching the job market, I will be making at least $8.00/per hour less. Therefore, we will not have enough disposable income left to continue paying into the Chapter 13 plan. Of course our lawyer seems to believe I will find another job making what I was making, and is frowning upon even considering modifying. We will have no choice but to try and convert to a 7. My spouse's pension, alone, will be reduced by almost $900 in October. Our plan payments are $720.00 for 5 years. Even with just his pension decreasing, we will be short. He is still working a temp job which is already included in the plan payments.
Also, we have 2 mortgages on our home. We are paying both mortgages outside the chapter 13 plan. We have always been current with both mortgage payments. We have never been late or slow paying our mortgages whatsoever. We also have 2 vehicles. One vehicle is 2002 grand Cherokee which at the time we began our chapter 13, we owed 11,600. I believe at the time of filing, the equity in the grand Cherokee was approx. $6000.00. We also have a 2001 sebring which we owe more than the value. Both vehicles are also being paid outside the plan and we have always been current on both vehicle payments. Never late or slow pays on either vehicle.
The only other assets we have is our checking account. We have our household furnishings/goods worth perhaps $2,000. This is all we have.
If we try to convert to a chapter 7, will we lose our home, vehicles, monies in checking, or our household goods?
Do you see any reason as to why we would have any problems trying to modify or convert our chapter 13 plan?
We live in Maryland.
I apologize for the lengthy posting but I am so scared and stressed by all of this.
Thanks for any advice or suggestions. It is greatly appreciated.