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  1. #1

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    unemployment and chapter 13

    Jurisdiction / State: Kentucky

    I am currently in a Chapter 13 and making payments, but have been laid off from my job. My payments were set up with a small monthly payment and a large lump sum payment when I receive my tax return. I have just discovered that my unemployment will only be $174 a wk not really enough to make it on, if I'm unable to make my lump sum payment, will they be able to reposess my car (which is in the bankruptcy)? I'm not worried about the others as much, because I have to have my car to look for work and the others were monetary and I believe being unemployed, I am judgement proof.


  2. Registered User Distinguished Colleague

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    They will try to get relief from the courts to get the car.

    You should talk to your attorney about converting to a chapter 7. See about reaffirming with the car, you need to see how past due the car is and talk to Collection Manager about refinancing it and reaffirming it under the chapter 7, if the amount past due is to much.
    When you convert to a 7 you will need to be current on the car or they will get relief to pick it up. If you stay in the 13 and are unable to pay the trustee in time they will dismiss the case and they can get the car after that too.

  3. #3
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    You should convert to Chapter 7. There is no way you'll be able to afford those payments be an unemployed. If you want to keep your car you will have to be current on your payments as they will repossess it. Filing chapter 7 will eliminate all unsecured debts and you will have no payments on them. Chapter 13 is set up for those that are employed and can afford the payments. This is why the trustee put you in a Chapter 13 because you are able to repay the debt. Since your situation is changed converting it would be your only way out.

  4. #4

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    chapter 13 bankruptcy

    Hey it seems that you are in desperate need for a legal advice. In order to get a legal advice you need to approach a lawyer or attorney.

    I came across a website last night while browsing which might be useful for you
    debtreliefohio.org

  5. #5

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    You are into a critical position and I express my sympathies for you. I am helpless to resolve your financial issue and take off your stress, as the legal matters are too complicated and the lawyer who has handled your bankruptcy petition might be having a clear picture regarding your current financial situation and what exemptions has been granted to you. You must have words with him.

  6. #6

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    Chapter 13 is - simply stated - a court authorized debt management program. It is a means of creating a pay-back plan and very often the Trustee is able to authorize a program where debts are essentially, eventually paid back in full.

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