Modification to Chapter 13

[robertrk]

What is the name of your state? Maryland

We are in a 5 year plan. My spouse may become jobless soon. If so, what can we do to have the plan adjusted? Will we have to start over again? Right now we are paying $720 monthly. But we will be $980 less a month in income due to this job loss. Will the trustee allow us to adjust the plan for a lesser monthly payment somehow? If so, what all is involved in getting this done? I don't care about more atty fees as we currently get free legal fees as a benefit through my company. Of course my spouse will look for more work but being a senior (62 yrs old), it is hard finding work. Most companies usually do not hire much older people (even though they will not admit to this). I can also tell you there are no jobs to be had here right now. (State of Maryland)
Thank you for in advance for your help.

 

[Elmo-1]

robertrk,
Contact your Trustee and attorney asap. The $980 lost income is more than your plan payment / disposable income of $720. This will make you eligible for Chapter 7 - if you want to convert. Problem is that in Maryland there's no exempt equity in your homestead, and Federal exemptions aren't allowed.

In other words, you could loose you home in Chapter 7, unless your attorney knows a way around the exemption problem. However, Chapter 7 may be your only option if you have zero disposable income. If you want to stay in Ch 13 to save your house, your spouse will have to find employment soon. Otherwise the plan is not feasable.

In any event, you need to contact your attorney and get his ideas as well as his advice about the best way to contact your Trustee. Your attorney may want to do that for you in a motion to modify your plan, or to convert it to Chapter 7.

Try not to miss any payments to the Trustee without contacting him first. He may allow you a month to postpone a payment while your spouse finds employment - as long as you catch up on the next payment. If you get your case dismissed for non-payment, it'll be 180 days before you can file 7 or 13 again.