What Happens Now

What is the name of your state? Tn

In October of 2002 I filed Chapter 13 I made November and December payments to the trustee.

Now here is the major problem: I have been on Workers Comp since November of 2001, In January of 2003 W/C decided that they are not responsibile for my neck injury only the shoulder injury..Even though they have been paying for all the medical bills on the neck, And in March of 2002 the doctors made it very clear that the shoulder was at MMI but the neck was not they still continiued to pay for all treatments perscriptions and Me..

My W/C lawyer says until I reach MMI there is nothing he can do until we go to court for a settlement. I have tried to look for work but due to my restrictions from the doctors no one will hire me.

Now I have a letter from the trustees office that May 6st I have to appear in court and that the case will be dismissed if no payment is made.

My Bankruptcy Lawyer is on vacation and no one to talk?


What happens if case is dismissed?

I don't want to loose my house and the doctors say it will be at least another month before I reach MMI and even then I can not return to same type of Job..This was also told to me by the shoulder doctor in March of 2002

Sorry this is so long but I'm so confused

[Ladynred]

If your case is dismissed, your creditors will come back after you and if you can't make your house payments it will be forclosed. It would be pretty bad.

You have a couple of options here.

You can petition for a change in your plan to reflect your reduced income.

You MAY qualify for a hardship discharge of the Ch 13, your lawyer would know if you can qualify based on your change in income.

OR, you can convert to a CH 7 and get all the debts, except the house, discharged.

What was the reason for going Ch 13 in the first place ? Do you have excessive equity in your home ?? TN is rather stingy with only a 5,000 exemption for homestead (I live in TN too).

Found this on the FAQ of this site on a hardship discharge of a Ch 13 - you may qualify:

"WHAT IS A CHAPTER 13 HARDSHIP DISCHARGE?
There are limited circumstances under which the debtor may request the court to grant a "hardship discharge" even though the debtor has failed to complete plan payments. Generally, such a discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor’s control, and through no fault of the debtor, after creditors have received at least as much as they would have received in a Chapter 7 case and when modification of the plan is not possible. Injury or illness that precludes employment sufficient to fund even a modified plan may serve as the basis for a hardship discharge."