Legal Question in Bankruptcy in Texas

Filed Ch. 13---then laid off, what should i do?

Wife and I filed Ch. 13 last week to stop foreclosure due to job lay off 1 year ago. Our paperwork listing creditors and such is due next week. I am now without employment again due to company losing contract. My wife is self-employed. My question is this? Without steady income can we still proceed with Chapter 13? Am seeking employment and hopefully will have something soon. We have credit card debt of around 20,000. If we can make house payment every month but then have very little for creditors are we still eligible? If not could we switch to chapter 7 (if possible) and still keep house?

Thank you


Asked on 10/14/03, 10:19 am

2 Answers from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Filed Ch. 13---then laid off, what should i do?

You'll probably need to convert to Ch. 7. You can keep house, car, and other property if you work them into your plan.

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Answered on 10/14/03, 12:01 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Filed Ch. 13---then laid off, what should i do?

You can still proceed with a Ch. 13 case and essentially pay more at the end of your plan. However, I believe you should change your case into a chapter 7 case -- ESPECIALLY if you are able to keep current on your mortgage payments. If you are current on your mortgage and your car payments (if any) then I almost always recommend chapter 7. PLEASE READ MY FIRM PHILOSOPHY! Your issues are getting a little complicated and I suggest you contact myself or another attorney to discuss your situation in more detail. ph. (972) 231-5500.

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Answered on 10/14/03, 4:05 pm


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