How does losing my job affect my chapter 13 bankruptcy trustee? 30 Answers as of January 21, 2013

I have chapter 13 trustee and I lost my job how does that affect my case?

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The Law Office of Jacqui Snyder
The Law Office of Jacqui Snyder | Jacqui Snyder
Let your attorney know, depending on who your trustee is, they may also want to know. You may be able to modify your plan to reduce the payments, or convert your case to a chapter 7 if the only reason you filed the 13 was because you had excess income. Your attorney may also be able to request one or two months off the plan to see if you can find work soon.
Answer Applies to: Ohio
Replied: 8/18/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
To get the benefit of the discharge of debt in Chapter 13, you have to be able to continue making all of your timely plan payments. You may qualify for conversion to Chapter 7 with no income or with some income, a modification of your current 13.
Answer Applies to: Indiana
Replied: 8/10/2011
Law Office of John C. Farrell, Jr.
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
Meet with your attorney to see if you can convert to a Chapter 7.
Answer Applies to: Massachusetts
Replied: 8/10/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
Among other things, if your income declines you may now have the opportunity to either file an amended plan with a lower payment plan or the opportunity to convert your case to chapter 7.
Answer Applies to: Oregon
Replied: 8/9/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
If your job loss doesn't give you enough to make your necessary payments in Chapter 13, case dismissed or can convert to Chapter 7.
Answer Applies to: California
Replied: 8/9/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    It depends on where you are in the Chapter 13 case. A long term loss of income before the plan is confirmed may make getting a plan confirmed impossible if payments would not be feasible. If you are in a confimred plan, the change in income may justify modification of the plan depending on what debts the plan was set up to address and how much room it leaves for changes. In some cases, your change of income may justify conversion to a Chapter 7 case and entry of discharge. You should talk to your bankruptcy attorney.
    Answer Applies to: Colorado
    Replied: 8/9/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    It will affect your case if you cannot continue to make the plan payments.
    Answer Applies to: California
    Replied: 8/9/2011
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Having a steady income is one of the main requirements of Chapter 13, because it is through your earnings that you are able to pay the Chapter 13 plan payments. If you have lost your job, you need to tell your attorney immediately so you can discuss a modification to your plan. If you don't get replacement employment in a relatively short time and are unable to make your plan payments, your Chapter 13 may be dismissed.
    Answer Applies to: Utah
    Replied: 1/21/2013
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You case will be dismissed by the Trustee if you do not continue making your plan payments
    Answer Applies to: California
    Replied: 8/9/2011
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    You must notify the trustee immediately of your unemployment. Also provide the trustee with proof of any unemploynment compensation you will get. Then ask the trustee, in writing, to reduce or temporarily stop your payments, until you are employed. Your attorney should do all of this automatically. I hope you have one.
    Answer Applies to: Ohio
    Replied: 8/9/2011
    Lake Forest Bankruptcy
    Lake Forest Bankruptcy | Anerio V. Altman, Esq.
    Yes. If you will be unemployed a long time, you should contact your attorney and let them know what is going on. Actually, you should contact your attorney in any case. If you don't have counsel in this matter, wait and see whether you will be unemployed-If you will find a job quickly at about the same amount of income, you don't need to change anything. If not, you may need to convert your case.
    Answer Applies to: California
    Replied: 8/9/2011
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    If you can still make your payments there is no effect.
    Answer Applies to: Florida
    Replied: 8/9/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If your job was your only source of income, then the trustee can ask that your case be dismissed if you can't make the payments. If you have other sources of income it is possible that your payment can be lowered because of the loss of income. However you still must have enough to pay your secured creditors and the trustee or you will have to reject the contracts and possibly lose your house, car, whatever. You also may be able to convert to a Ch 7, but you would still have to become current on any secured creditors to keep that item.
    Answer Applies to: Michigan
    Replied: 8/9/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    To remain in Chapter 13, you must be able to continue making your payments. You can request a temporary suspension of payments to give you time to find employment. Call your attorney and let him/her know what has happened.
    Answer Applies to: Alabama
    Replied: 8/9/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    To continue in a Ch13 you need a regular source of income
    Answer Applies to: Mississippi
    Replied: 8/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you cannot make your payments the case will be dismissed at some point in the future. You may modify the plan to lower the payments required if you can make the plan longer (maximum 60 months). You can even ask the court to suspend payments for a few months if necessary but you must be able to pay the total amount of the Plan within 60 months.
    Answer Applies to: California
    Replied: 8/9/2011
    Ethan Myers Law Firm PLLC
    Ethan Myers Law Firm PLLC | Ethan Myers
    My understanding is that you filed for Chapter 13 and had your Ch 13 plain confirmed. You had been making payments, and now you have lost your job. If that is the case you have three possible option One, have the case dismissed due to a hardship, which I think means that you don't have to pay back you're creditors Two, Modify the plan (have the plan modified) temporarily or possibly permanently to something more manageable. Three, Convert the case to a Chapter 7 Depending on your situation and ultimate goals the outcome might still end up accomplishing what you had hoped for in filing the chapter 13 (for example saving a house from foreclosure, ext.
    Answer Applies to: Texas
    Replied: 8/9/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    It may mean converting to a 7 or moving for a hardship discharge. If you filed with a spouse who still has income, you could modify the plan if you cam still make basic expenses.
    Answer Applies to: Virginia
    Replied: 8/9/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If you cannot pay your plan, your case will be dismissed. You can ask for the court to suspend your plan payment but that will only buy you some time. If you don't have income to pay your plan, your case cannot continue.
    Answer Applies to: California
    Replied: 8/9/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Unless you can otherwise fund your payments, it destroys the present case. Your post makes it sound like you don't have a lawyer. Get one now. You MUST get one. Depending on the details of your case a good lawyer may be able to amend your plan, convert to a 7, or get you a hardship Chapter 13 discharge. In some cases you may also want to dismiss and do a new 7 or a new 13.
    Answer Applies to: Georgia
    Replied: 8/9/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You might be eligible for Chapter 7 now... at a minimum you may need to file a motion to reduce your payment.
    Answer Applies to: California
    Replied: 8/9/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Your job is what allows you to be able to pay into a chapter 13 bankruptcy each month. When a debtor loses his/ her job, that person should contact the trustee/ court to inform them of this. The court might grant a temporary forbearance on the current payment plan to allow you time to get a new job or otherwise regain employment. If this is not the case and it becomes evident that you will not regain employment, you might consider converting your ch. 13 to a ch. 7 if possible. You should probably contact the attorney you used for the 13, and if you haven't hired one yet, you might want to consider seeking the advice of one given your change in circumstances.
    Answer Applies to: California
    Replied: 8/9/2011
    Srai Law Office
    Srai Law Office | Gurjit Singh Srai, Esq.
    Generally, a chapter 13 payment plan is based on your monthly income. If you have lost your job that directly affects the payment plan. Therefore, you might need to submit a new plan to the trustee.
    Answer Applies to: California
    Replied: 8/9/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Income critical in 13
    Answer Applies to: Maryland
    Replied: 8/9/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    If you don't have any income to fund a chapter 13 plan, you will need to convert your case to a chapter 7 bankruptcy.
    Answer Applies to: Washington
    Replied: 8/9/2011
    Benson Law Firm
    Benson Law Firm | David Benson
    You should consider converting your case to a Chapter 7.
    Answer Applies to: Ohio
    Replied: 8/9/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    You may be able to modify your Chapter 13 plan to a lower payment since you lost your job, but it depends on what type of debts you were paying in the Chapter 13. You may also consider converting to a Chapter 7. Our firm will modify your plan and determine whether Chapter 7 is an option so call us today at (303) 955-7570 to see if we can lower your payments.
    Answer Applies to: Colorado
    Replied: 8/9/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If you lose your job during chapter 13 you can file a motion to modify to lower the payments.
    Answer Applies to: California
    Replied: 8/9/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If you cannot make your plan payments due to job loss, then the Trustee would file a motion to dismiss for failure to comply with the plan. Your options are to modify the plan which, without disposable income, will be difficult, or if it has been more than 36 months since you started on your plan, you may look to apply for a hardship discharge of your income prospects are not going to change.
    Answer Applies to: California
    Replied: 8/9/2011
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