What is the name of your state? Maryland
My spouse and I have been in a 5 year Chapter 13 plan since Dec. 02. Since then, I lost my 15 year job due to plant closure. My spouse's temp jobs were over and he now works a permanent job, making less. I am receiving severance which will be over next month. My previous employer advises they will send a letter to the trustee to let him know my wage garnishment will end as of May 20th and I will no longer be on the payroll. They are advising him my job is over due to plant closure and no fault of mine. Now my atty is aware of this. I also have a new job now but both my spouse and I are making much less. As a matter of fact, our chapter 13 plan was set for $720 per month for 60 months. The trustee has been receiving $720 per month since Dec. 02. Also, my spouse's pension will be decreasing by $1240.00 next month. Therefore, between our new incomes and the lessened pension, we will no longer have $720 per month out of our income to pay. As a matter of fact, we will be short by $89.00 + per month, beginning next month. Meaning, after paying our monthly expenses that were originally approved for in our chapter 13 plan, we will now be $89.00 in the hole. My atty is aware of this. He said that we can try and modify the plan but that the trustee does not have to accept it and we can be back at square one. Can anyone tell me why the trustee or the court would not accept that we may have to convert to a chapter 7? I mean afterall, it was not of our doing that we are making less income due to job losses, and pension decreases. I am really scared now. Has anyone ever had to convert from a 13 to a 7 and if so, have you been denied? Also, if permitted to convert, does this mean that if the court or trustee permits us to convert to a chapter 7, does this mean we start all over again or will the first 1.5 years we paid into the chapter 13 count towards the overall years this will stay on our credit reports?
I forgot to mention that we have 2 mortgages and 2 cars. Both mortgages and both cars are being paid for outside the Chapter 13 plan. Both mortgages and cars have never had any late or slow pays. Therefore, if we are given permission by the trustee and court to convert our plan due to job losses, pension decreases, etc., does this mean we would lose our home and cars? There is no equity in the home. We owe more than the value. The same with both vehicles. Also, is my spouse's social security excluded or included as income? I am including it as part of our total monthly income. However, social security payments are not always monthly. If my spouse makes more than allowed by social security, they withhold some months of payments.
Sorry this is so lengthy but if anyone has any suggestions, I would greatly appreciate it. Thanks so much!
My spouse and I have been in a 5 year Chapter 13 plan since Dec. 02. Since then, I lost my 15 year job due to plant closure. My spouse's temp jobs were over and he now works a permanent job, making less. I am receiving severance which will be over next month. My previous employer advises they will send a letter to the trustee to let him know my wage garnishment will end as of May 20th and I will no longer be on the payroll. They are advising him my job is over due to plant closure and no fault of mine. Now my atty is aware of this. I also have a new job now but both my spouse and I are making much less. As a matter of fact, our chapter 13 plan was set for $720 per month for 60 months. The trustee has been receiving $720 per month since Dec. 02. Also, my spouse's pension will be decreasing by $1240.00 next month. Therefore, between our new incomes and the lessened pension, we will no longer have $720 per month out of our income to pay. As a matter of fact, we will be short by $89.00 + per month, beginning next month. Meaning, after paying our monthly expenses that were originally approved for in our chapter 13 plan, we will now be $89.00 in the hole. My atty is aware of this. He said that we can try and modify the plan but that the trustee does not have to accept it and we can be back at square one. Can anyone tell me why the trustee or the court would not accept that we may have to convert to a chapter 7? I mean afterall, it was not of our doing that we are making less income due to job losses, and pension decreases. I am really scared now. Has anyone ever had to convert from a 13 to a 7 and if so, have you been denied? Also, if permitted to convert, does this mean that if the court or trustee permits us to convert to a chapter 7, does this mean we start all over again or will the first 1.5 years we paid into the chapter 13 count towards the overall years this will stay on our credit reports?
I forgot to mention that we have 2 mortgages and 2 cars. Both mortgages and both cars are being paid for outside the Chapter 13 plan. Both mortgages and cars have never had any late or slow pays. Therefore, if we are given permission by the trustee and court to convert our plan due to job losses, pension decreases, etc., does this mean we would lose our home and cars? There is no equity in the home. We owe more than the value. The same with both vehicles. Also, is my spouse's social security excluded or included as income? I am including it as part of our total monthly income. However, social security payments are not always monthly. If my spouse makes more than allowed by social security, they withhold some months of payments.
Sorry this is so lengthy but if anyone has any suggestions, I would greatly appreciate it. Thanks so much!