New Jersey  |  Bankruptcy

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1/25/12, 3:50 am

Legal Question


My husband & I filed chapter 13 in 2009. Our payments were based on me receiving Unemployment (which was a temporary income). I repeatedly told our attorney this and indicated once the unemployment stopped, we would not be able to make the payments. We voluntarily surrendered our home in order to keep our vehicles as we would need them for future employment. My husband then was laid off in early 2010 and was also collecting unemployment. My U/C stopped (which was double his amount). We have missed many payments now and additionally, my husband wrecked his vehicle which has been paid off by the insurance company. He is again employed while I have now been listed as 100% disabled and receiving SSI benefits. We were homeless for 6 months and are living in a friends' home while they are trying to sell it. We pay all of my SSI for home rental. We still cannot make the trustee payments and our lawyer has advised us not to show up for our court hearing tomorrow if we cannot make the payments. He also wants and additional $1250 to file chapter 7 after he charged $3500 for the chapter 13. Do we show up to court unable to pay anything or what should we do? Thank you. (we are still trying to hold onto the only vehicle we have so my husband does not lose his job and has to go back on unemployment). My husband has a medical condition requiring $1400 a month in prescription meds that his company does not cover and he barely makes that per month.


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