If take FMLA from work to care for ill parents will that affect amt owed on a ch 13?

would not have same income and wonder if possible to change to file ch 7?
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L Jed Berliner

L Jed Berliner

Contributor Level 4
The required payment in a Chapter 13 case (Projected Disposable Income) is based on the average monthly income you received during the full six months ending with the month before you filed. A FMLA break from work will reduce the required Chapter 13 payment to that extent. If you file in the same month when your leave began, then there's no effect on that six month period which ended with the month before the filing, so there's no effect on the required payment. The longer you wait, the greater the effect on that average monthly income for that defined six month period.

A judge might accept the argument that the FMLA leave is a "special circumstance" allowing you to file a Chapter 7 case despite high PDI. Also, a judge might allow you to file income and expense schedules based on a date other than your filing date, i.e. a future date. I would wait to file until your six month average income is brought too low to require a Chapter 13 filing if you possibly can, as I try not to rely on a judge's discretion if possible. It doesn't always go the way I'd like.

If you are already in a Chapter 13 case, then a FMLA break from work may permit you to modify your plan, seek a Chapter 13 hardship discharge, or convert to Chapter 7.

Good luck. You can get answers to more bankruptcy questions at www.berlinerlaw.com and www.bankruptcylawnetwork.com
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