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Chapter 13 Modification Question

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robertrk

Member
What is the name of your state?

Maryland

We just had our 341 on 12/27. Of course now we wait until 2/10/03 to see if there are any objections and waiting until 3/27/03 deadline for all claims to be submitted. Confirmation hearing is set for 3/3/03. But now I have a worry. My husband came home from his temp job that he has been working for just about a year now. He advised the company is beginning it's layoffs. A few temps that began working there a few weeks before my husband got notice today that next friday is their last day. Some of these people will be going to the unemployment line. My husband says he believes he may be losing his job by the end of this month as well. Now of course he cannot draw unemployment as he has a pension coming in. The temp service has told these other people that they have no work to place them in right now. so my question is this. My husband needs this temp job as it was used as income when we filed on 11/18/02. I certainly don't need anymore problems with this bk right now but if my husband does lose this job, we will not be able to afford the chapter 13 payments. Our chapter 13 payments right now are $720.00 barring no objections. We have made 2 chapter 13 payments thus far. We are in a 5 year plan. However, they based my husband's temp job as $987.00 take home pay each month. But if he loses this job, you can see we will not be able to do the chapter 13 payments.
Can anyone tell me what will happen now? Can we modify the plan or convert to a chapter 7 or will the trustee or court dismiss our chapter 13 and make us refile for a chapter 7? I am very confused about what will happen, how bad this will look in the eyes of the court/trustee and if they will allow us to modify already, although we have not even yet been confirmed for our Chapter 13 plan yet.

I also asked my lawyer if we should tell the trustee that there was a possibility my husband may lose this temp job in the first part of 2003. Our lawyer said NO. He said the chapter 13 plan is based on what we are making now. I also asked our atty if we should tell the trustee that my husband's pension will be decreasing by approximately $894.00 in Sept. 03 which is when my husband will need to begin drawing his social security. Again, our lawyer told us NO. He said if my husband loses his temp job, either my husband will have to look for another temp job making the same amount of money or we would have to inform the trustee at the time my husband cannot obtain another job. As for his pension decreasing, the lawyer said we will not be advising the trustee about this until it happens. But by that point, we will not have monies for a month or two and would not be able to pay the chapter 13 plan. That would definitely be bad.


Any help or advise would be greatly appreciated. As you can see, I am so worried and scared.

Thank you.
 


Ladynred

Senior Member
If you cannot make your payments, then your bankruptcy will be dismissed and you'll be in big trouble. You most certainly CAN modify your plan if your husband gets laid off. With the job market as bad as it is, its not unreasonable that he will have a very hard time finding a new job in any decent timeframe to save your plan. In the event he does lose his job, you can also ask to convert to a Ch 7. I'm not sure I, personally, would agree with your lawyer, it sounds to me like he's putting you at risk of a dismissal. You'd be much better off bringing it up to the Trustee if he's laid off than waiting and not being able to make your payments.

This sort of thing happens more and more, especially in the current economy and job market. I doubt the Trustee would even raise an eyebrow.
 

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