Monday, November 7, 2016
What Happens If I Lose My Job During My Chapter 13 Bankruptcy Case?
One of the biggest needs during a Chapter 13 bankruptcy is the need for a steady stream of income. A Chapter 13 is like a debt consolidation, where your come up with a plan on how to repay your debts, and then make one monthly payment to the Chapter 13 Trustee. The Trustee will then pay your creditors, according to what your Chapter 13 Plan proposes to repay. The purpose of coming up with a feasible Chapter 13 Plan is to reduce what you owe, while still making the payments that are required to be made. So, if you lose your job, you will probably not be able to keep making the payments to the Trustee as required. This is a very real possibility for a lot of people, so it is important to understand what happens if you lose your job during a Chapter 13 bankruptcy.
There are options you can exercise, to keep your bankruptcy afloat, if you lose your income while in the middle of a Chapter 13 bankruptcy. Some of these options include:
• Asking for a modification of your plan, which might require you to return some pieces of collateral that you had previously hoped to keep and pay for during your case.
• Ask that your case be switched from a Chapter 13 to a Chapter 7, which could still require you to surrender certain pieces of property.
Of course the most important thing you can do is to find new employment as soon as possible, and if you are able to get a new job quickly there may not be much disruption to your bankruptcy case. However, we understand how difficult it can be to secure a position that pays well and meets your family’s needs. If you are in danger of losing your job, start your search now if you can and if you have lost your job while your Chapter 13 case is pending, call us as soon as possible. The sooner we know your circumstances, the faster we can get to work on a remedy for you.
For more information about bankruptcy, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.