What is the name of your state? Maryland
We are in a chapter 13-5yr plan. We will be needing to try and convert to a chapter 7 due to the loss of my job and lesser pension income on my spouse. 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.
My only fear is that after doing much figuring, and estimating how much I will make in finding a new job, we will end up with negative, disposable income of about $250 to $350 per month in the hole.
Will we still be permitted to try and convert to a chapter 7 with this negative disposable income? Or, will the Trustee dismiss our case and we will be in lots of trouble then? I am getting so worried, frustrated and depressed over all of this continued mess. I am about to have major surgery on 6/9. I hope all this worrying and stress does not cause problems with the outcome of my surgery. I am at wits end right now. I feel I am losing control.
PS. Our 2 mortgages are and have always been current on payments. We have never had any lates with mortgages. We also have 2 vehicles which are current on payments and we have never been late with either of these as well. One vehicle has approx. $6,000. in equity. The other vehicle we owe more than it is worth. The only other assets we have is our checking acct which has just enough for bills each month. We have our household furnishings/goods worth perhaps $2,000. This is all we have. We have so far paid 7 payments of $720.00 into the plan.
Thanks for any advice or suggestions. It is greatly appreciated.
We are in a chapter 13-5yr plan. We will be needing to try and convert to a chapter 7 due to the loss of my job and lesser pension income on my spouse. 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.
My only fear is that after doing much figuring, and estimating how much I will make in finding a new job, we will end up with negative, disposable income of about $250 to $350 per month in the hole.
Will we still be permitted to try and convert to a chapter 7 with this negative disposable income? Or, will the Trustee dismiss our case and we will be in lots of trouble then? I am getting so worried, frustrated and depressed over all of this continued mess. I am about to have major surgery on 6/9. I hope all this worrying and stress does not cause problems with the outcome of my surgery. I am at wits end right now. I feel I am losing control.
PS. Our 2 mortgages are and have always been current on payments. We have never had any lates with mortgages. We also have 2 vehicles which are current on payments and we have never been late with either of these as well. One vehicle has approx. $6,000. in equity. The other vehicle we owe more than it is worth. The only other assets we have is our checking acct which has just enough for bills each month. We have our household furnishings/goods worth perhaps $2,000. This is all we have. We have so far paid 7 payments of $720.00 into the plan.
Thanks for any advice or suggestions. It is greatly appreciated.