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Bankruptcy Law/Changing jobs in chapter 13

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Expert: - 7/7/2006


Question
Me and my wife filed a chapter 13 bankruptcy last october. Tis spring I was on unemployment for about three months because of a work slowdown. We were allowed to work 60% of our unemployement. Now i'm on vacation for three weeks and my job is still up in the air. I make 13.35 an hour plus benefits ins etc. I had an offer for a state job for 10.00 an hour plus benefits. This would be a secure job. Could I legally take this job and get my payments reduced? we pay 1900.00 a month and have 26 months left to pay. At 1900.00 a month our budget is really tight already. I've got my wifes car that needs work and I don't know where that money is going to come from. Were not allowed much extra money for upkeep on vehicles or our house. Thanks Kent

Answer
It may be possible to reduce your Plan paments, but there is no way to answer this without making a complete review and analysis of your original filing. For example, Chapter 13 requires, among other things, that the value of your non exempt assets is paid over time into the Plan. I don't know what your assets and exemptions are, so I don't know if a reduction in your Plan payments would violate that rule. I don't know why you are in a 13 as opposed to a 7. Please go and see a good local bankruptcy attorney right away for guidance. Most lawyers will give you a free consultation. If you have no where to turn, you can give me a call, 213-629-8801 M-F and I will be glad to share some thoughts with you.

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Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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