Expert: Mark J. Markus- California Bankruptcy Attorney - 12/5/2007

Question
My wife and I filed a Chapter 13 in September 2004.  The plan was confirmed in December 2007 and would be completed in three years. At the time we filed we both were gainfully employed and was ordered to pay a little over $1300.00 a month.  I owed federal taxes.  The taxes were added to the plan within a few months of filing.  After three years in the plan and looking forward to completing the plan we have just found out that nothing was paid on the taxes through our plan.  We received a letter stating that the plan had been extended to five years in order to get the taxes paid.  We immediately contacted our attorney and advised her that we had financial hardships because only one of us was working and the other had become unable to work and that we could not continue the $1300.00 any longer. She telephoned us back in a little while and said she or the trustee had somehow made a mistake.  She said the payment would have to remain the same in order to have the taxes paid in two year and that the plan could not be extended for any longer than two years because we had already been in for three years.   We are paying almost $800.00 per month for the taxes alone.  We inquired if we could withdraw, have the payment lowered or convert to a Chapter 7.  Everything in the plan was paid execpt for Six Hundred and some odd dollars on the mortgage arrears and Six Hundred and some odd dollars on the vehicle.  Our attorney is telling us she is unsure if there is anything we can do and if we withdrew the creditors could come after us for the interest.  I feel that she really doesn't want to be bothered with this and does not have our best interest at heart. Our question is since we are financially burdened at this time can we get a reduction in plan, convert to a Chapter 7 or withdraw.  If so, which would be more fesible?

Answer
Yes, you can either dismiss your case or convert to Chapter 7.   As to which would be best, that's way beyond the scope of this service.  There are too many factors to consider and without a complete analysis of your Chapter 13 plan, assets, and current financial situation, I wouldn't even attempt to offer you advice on that.  If you're unhappy with your present attorney, you should locate a new one in your area immediately to assist.