I am in the 4th year of my chap 13. I have been unemployed since Jan. and have been unable to keep up my payments to the trustee. A modification is in the works. Here is my problem:
Last year our house was damaged by Hurricane Ike. Our family had just evacuated the week before for another hurricane only to have to do it again, only longer the next week. Upon returning to work my employer offered a interest free loan to assist those with damage. I had spent all of our available funds for both evacs.
I took the loan with out notifying the trustee or my lawyer. Since losing my job, I now owe the balance of that loan and my ex-employer is preparing to pursue legal action. The balance of the loan is ~$4000.00.
I am planning on notifying my attorney before the modification papers are submitted, but would like to know what the potential consequences and/or options will be.

