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  1. #1
    Join Date
    Apr 2009
    Posts
    3

    Default No Job or Cash to Make Chapter 13 Payments

    My question involves bankruptcy in the state of: Texas.

    In July 2007 I filed chapter 13. The largest creditor in the plan was the IRS. At the time I was gainfully employed with confidence I would be employed to and past the end of my payment plan in 2012. In November 2008 I resigned from my position because of known unethical practices and activities by the corporate president who was also president of the school board. I was the business manager at a charter high school which made me too close to the seriously questionable actions being taken. At the time I resigned I had enough cash set aside to last about 5 months which is now. The payment is drafted from my bank account each month and I have never missed a payment. However, I have not found another job. It is going to be hard because I am a retired account [lots of accounting jobs but my age makes a difference] and am competing against kids out of college, etc. I know companies can’t discriminate based on age but they can cover this up.

    At this time my only income is social security and it is not enough to pay normal living expenses and the bankruptcy payment. I had a 401k from Lockheed Martin but I used it to pay legal costs for my granddaughter’s molestation case. Her mother, my daughter, is repaying me monthly but she is only able to pay a small amount. I used the 401k without a blink, since my granddaughter was a risk and I would do it again if needed for any of my grandchildren.

    The automatic draft comes out of my bank on the 20th and I have emailed my attorney and described to her the situation. This will be the first month in over 2 ½ years that I am going to miss a payment. The attorney has not responded. When I contacted the trustee, they provided me a form to stop the automatic draft but if I don’t make a payment this month, I will be a payment late and behind. They tell me to contact my attorney. I have but the attorney has not responded.

    I don’t have the cash to make the payment this month and what I can pay in future months depends on if and what kind of paying job I can get. I am looking daily for a job but have not found one. Maybe I can get in line for a stimulus check or bail out in Washington, D.C.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: No Job or Cash to Make Chapter 13 Payments

    I understand your situation, but I'm not seeing a question in there.

  3. #3
    Join Date
    Apr 2009
    Posts
    3

    Default Re: No Job or Cash to Make Chapter 13 Payments

    I read from another attorney's website re: chap 13 and he said sometimes if a hardship can be supported or proven, the case can be reduced or in some cases dismissed. My only income is Social Security to support my house payment, utilities, my wife and a large supplemental medical insurance premium. No car payments and one credit card. I am short each month about the amount of the Chapter 13 payment. I can show that I am constantly applying and searching for a job but at 69 it is hard to find one.

    Something has to give. I will have to sell my house, payments $527 and move into an apartment that will cost probably near $900. Sell my car and have no transportation. I can't make all these payments including the chapter 13 payment.

    Question: do I possibly have reason(s) for hardship and could apply for dismissal? If I choose to pay my mortgage, which was not in the chap 13, food, utilities, medical insurance but not the chap 13 payment, what will happen? I would like to finish what I agreed to do but I did not forsee these circumstances coming.

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