San Jose Bankruptcy Attorney explains how a change in job status can affect a bankruptcy repayment agreement.
San Jose Bankruptcy Attorney explains how a change in job status can affect a bankruptcy repayment agreement.
Many people who file for Chapter 13 bankruptcy protection come out of the agreement with a repayment plan that must be completed in order to receive the bankruptcy discharge of their debts. But what do they do if they lose their job during the repayment plan? That is what happened in this story. A couple filed for Chapter 13 protection and the husband lost his job shortly after the repayment agreement was put into place.
The tale of Douglas and Sandra Richards is instructive to show how life events can interrupt the best laid plans. It also shows that the bankruptcy courts are responsive to those events. In the Richards’ case, the court has granted them a 21 day stay so that they can renegotiate their repayment plan with their creditors. Mr. Richards’ job loss is tied to his pleading guilty to accepting a bribe from a contractor related to his employment as a county human resources director.
Richards’ bankruptcy attorney is renegotiating the couple’s repayment plan with their creditors during the 21 day stay. The couple previously agreed to a $250 per month repayment for 44 months. They were less than 1 year into the plan when Mr. Richards pled guilty to the federal bribery charge. If you have agreed to a Chapter 13 repayment plan and have had a significant job situation change, consult your bankruptcy attorney and see if renegotiating your repayment plan is an option. In this weakened economy, job losses and job reductions are a daily occurrence. It is far better to reopen your repayment plan with the creditors and court than to default on your plan and be denied the bankruptcy discharge of your debts.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
