QUESTION
Will filing for unemployment negatively affect my case?
Asked on Apr 02nd, 2013 on Bankruptcy - New Jersey
More details to this question:
I just filed for chapter 13 bankruptcy. A week later, I lost my job. Will filing for unemployment negatively affect my case?
16 ANSWERS
If your income is not enough to sustain your chapter 13 plan the Trustee may request that you convert the case to a chapter 7. You may also convert the chapter 13 case to a chapter 7 on your own.
Answered on Apr 16th, 2013 at 12:47 AM
Commercial Bankruptcy Attorney serving Davie, FL
at
Law Office of Jeffrey Solomon
Update Your Profile
You are in a chapter 13 payment plan. If you lost your job, the issue is what type of chapter 13 plan can you continue to fund? Why are you in chapter 13? Maybe you can convert to chapter 7. You need to discuss your case with an attorney.
Answered on Apr 04th, 2013 at 8:11 PM
I would let your attorney know about the change in employment status. He/she may be able to propose a lower payment for your plan. Good luck.
Answered on Apr 04th, 2013 at 2:48 AM
Deborah F. Bowinski
It will affect your case as far as whether you can afford your proposed plan payments. If you have filed a chapter 13 case hopefully you are represented by an attorney in your filing. You should contact your attorney immediately to let him/her know of your changed situation.
Answered on Apr 04th, 2013 at 2:30 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Yes, it is a change in you circumstances which you should reveal, discuss with your attorney.
Answered on Apr 03rd, 2013 at 1:46 PM
It depends on the budget and what you were attempting to accomplish in your Chapter 13 case.
Answered on Apr 03rd, 2013 at 1:45 PM
Bankruptcy Attorney serving Dallas, TX
at
Polk & Associates
Update Your Profile
Not having a job may have a negative effect on your case, but the fact that you submitted application materials to TWC will not by itself have any effect on anything.
Answered on Apr 03rd, 2013 at 1:44 PM
Bankruptcy Attorney serving Hampton, VA
at
Haven Law Group, P.C.
Update Your Profile
Yes, if your income goes down. You may not be able to afford your plan payments.
Answered on Apr 03rd, 2013 at 1:43 PM
Debt Settlement Attorney serving San Diego, CA
at
Law Offices of Kathryn Tokarska
Update Your Profile
The act of filing for unemployment benefits does not by itself affect the case. However, the loss of income could be a big problem if you are unable to keep up with monthly plan payments. Discuss this new significant development with your attorney. I'm guessing because I don't know the details that either your chapter 13 plan needs to modified or the whole case should be converted to a chapter 7.
Answered on Apr 03rd, 2013 at 1:42 PM
William A. Siebert
No, it will not. You may want to talk to your lawyer about converting to Chapter 7.
Answered on Apr 03rd, 2013 at 1:41 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Filing for unemployment will not, but not having enough income to pay your plan will. Talk to your bankruptcy attorney. You really need guidance as you navigate the very complex world of chapter 13 bankruptcy.
Answered on Apr 03rd, 2013 at 1:40 PM
Estate Planning Attorney serving Wilmington, DE
at
Reger Rizzo & Darnall, LLP
Update Your Profile
It depends on whether you will have enough money for the plan.
Answered on Apr 03rd, 2013 at 1:39 PM
2 Awards
If you have no income your chapter 13 will be dismissed because you have no income so how could you pay your plan payments? So by filing for unemployment you will generate income to continue to pay your plan payments and stay in a 13. Or, you could convert to a chapter 7 due to a loss of income. I recommend seeking legal counsel to review your new income/expense numbers to see if you qualify for a 7, how unemployment will affect your 13, etc.
Answered on Apr 03rd, 2013 at 1:39 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
If you can not make your trustee payments, then your case could be dismissed. You may want to consider converting to a chapter 7.
Answered on Apr 03rd, 2013 at 1:38 PM
Bankruptcy Attorney serving Walnut Creek, CA
at
Alan E. Ramos Law Offices
Update Your Profile
Your plan may no longer be feasible, as you lost your main source of income. You may need to either consider converting the case to Chapter 7 or amending your plan.
Answered on Apr 03rd, 2013 at 1:38 PM
Richard hirsh
In order to qualify for a chapter 13 case, the debtor must have a regular income. That would include unemployment assuming that the unemployment compensation is sufficient to fund the plan and is otherwise feasible. In other words, unemployment income can substitute for salary or business income.
Answered on Apr 03rd, 2013 at 1:38 PM