Losing Your Job During Your Arizona Chapter 13 Plan?
A Chapter 13 plan often sounds like a great idea at the time you file for bankruptcy. But three to five years is a long time, and it is not uncommon for people to lose their jobs or face other financial hardships during that time. If you lose your job during the course of your plan, what options do you have?
The first option you have is to have your Tucson bankruptcy attorney talk to the trustee of your case and come up with a short-term solution. If you find a job shortly, there may not be a problem. If you don’t, you can file a motion to modify your plan, and explain these circumstances.
If you have no income coming in, and a Chapter 13 plan is now completely unfeasible, you can also try to convert your case to a Chapter 7 bankruptcy. In Chapter 7, you won’t have to make payments, and can have your debt discharged quickly. Additionally, you may not qualify for a Chapter 7 if before you could not, since your income is lower.
The problem with Chapter 7, of course, is that you could lose assets that you wanted to keep. This will all depend on the type and size of assets you have, and whether or not they are considered exempt under Arizona law.
If you are not sure what solution is right for you, talk to an experienced and knowledgeable bankruptcy attorney, who can offer advice tailored to your specific situation. Make sure you make the right decision and discuss all of your options with your attorney.