New here, filed Chapter 13 5/11/16

[amreynolds]

Hello All,

After a divorce from a "disabled" spouse, the decree was one sided (in his favor) and I owed all his debts in the property settlement agreement (none were actually mine). I also got the house, and my own bills...it got too much and after 2 years of treading, I pulled the plug and filed.
I have some questions that were not clear to me and maybe the pro's can clarify for me.

I listed all the creditors (ex included), surrendering the home, keeping my car out of the 13. I am proposed to pay $1,000 a month to the trustee for 5 years. Paying the debts at 100% and 4% interest (why the interest I do not really know, I think it was to keep more disposable income).

So what if some of the creditors do not file a proof of claim. What if my proposed debt becomes LESS? Is it adjusted during the meeting or do I end up paying it off early or can it be amended? I think it may have to stay the same amount as it is still my disposable income regardless.

Also, I am voluntarily surrendering the home. I was told to call the bank in 2 weeks (so they get the court paperwork) and speak to the BK dept. (its Chase), my lawyer said to talk with them to arrange to get the keys to them and discusses a cash for keys or deed in lieu of foreclosure. I explained to him that Chase may not even talk to me...he said they would. SO, if they take back the home, get the keys, sell it and there is a slight deficiency....how does that work during a 13? can they sue me still? I am just not clear on that or the limitations of them being able to sue for a deficiency.

Then there is the issue with the ex....this is really going to piss him off. He is not on the deed (did a quit claim) but is still on the loan. It was his VA loan. He is on a small limited income and will never be able to qualify for a home on his own again (unless he comes into money somehow), but he will be so mad that I have hurt his credit score now. There is NO support to him, just HIS credit card bills that I was ordered to pay, as he could not afford to pay them, and God forbid he EVER claim BK.

I am sure I will have many questions along the way. I thank anyone in advance who can help shed light on this a bit for me in the process.

[justbroke]

So what if some of the creditors do not file a proof of claim. What if my proposed debt becomes LESS? Is it adjusted during the meeting or do I end up paying it off early or can it be amended? I think it may have to stay the same amount as it is still my disposable income regardless.

If your debt is "less" then you would still continue to pay throughout the life of your plan until either the end of your commitmment period (36 - 60 months) or you pay 100% of the "allowed" filed unsecured claims. (If you're in a 100% plan it's moot except that if unsecured creditors don't file or are disallowed, then you'd have less to pay back.)

Also, I am voluntarily surrendering the home. I was told to call the bank in 2 weeks (so they get the court paperwork) and speak to the BK dept. (its Chase), my lawyer said to talk with them to arrange to get the keys to them and discusses a cash for keys or deed in lieu of foreclosure. I explained to him that Chase may not even talk to me...he said they would. SO, if they take back the home, get the keys, sell it and there is a slight deficiency....how does that work during a 13? can they sue me still? I am just not clear on that or the limitations of them being able to sue for a deficiency.

The creditor would be able to amend their secured claim and show a deficiency. The deficiency will just be part of what's due to the unsecured creditors. Since you're in a 100% plan, a large deficiency may either drive your payments higher, or put you in a plan which is below 100%.

Then there is the issue with the ex....this is really going to piss him off. He is not on the deed (did a quit claim) but is still on the loan. It was his VA loan. He is on a small limited income and will never be able to qualify for a home on his own again (unless he comes into money somehow), but he will be so mad that I have hurt his credit score now. There is NO support to him, just HIS credit card bills that I was ordered to pay, as he could not afford to pay them, and God forbid he EVER claim BK.

If you have a final decree that requires you to pay certain "debts", then the bankruptcy may not help you there. You and your attorney will need to review whether the debt you assumed was classified as "support" or just property division. I can't speculate as to the dischargeability, but I believe that if it's not related to support, then it should be "dischargeable". However, since you say that you're 100% plan, that would mean that you'd end up paying those debts anyhow. You would only discharge the portions that you didn't pay through the life of the plan (e.g. a plan that is not 100%).

Whether this pushes your ex-spouse into bankruptcy is not something you should worry about.

[amreynolds]

Thank you justbroke. The debt owed from the divorce is NOT support, just property division. I am sure the ex will file a proof of claim...not surprises there. As for the home, I do think they can get what is owed on it, I just do not have the cash to make the payments, fix the issues with it (which are expensive..roof, electrical, plumbing), or the extra in the realtor fees. I have had it on the market 4 months until filing and attempted to sell last year as well, but it was priced too high due to what I stated.

So, say the deficiency is like $10,000. Chase sues, I am 2-3 years into it, do I only pay them 100% until the end of 60 months and the rest is discharged???

My ex is deemed disabled, but functions just fine, drives long distances to see his girlfriend for weeks on end, parties, works in her yard, so disabled is a loose term, but according to SS, he is. I don't want anyone to think I left a poor defenseless person to fend for themselves. He has Multiple Sclerosis.

[justbroke]

I don't think you left a poor defenseless person behind. MS can be very serious yet not obvious to the naked eye so I can see that the ex-spouse may at times be 100% capable. I'm not worried about that status.

As far as the eventual foreclosure and any claim of deficiency, you'll just need to see both what it is and the amount. I don't know if the creditor would pursue the deficiency inside the bankruptcy since you are in a 100% plan. In any event, if they waited 2-3 years before filing an amended claim, there is no telling what they would be entitled to (payments forward or the entire amount since it's a 100% plan). There are some procedural issues that I have seen where a secured creditor that filed only a secured claim (with no unsecured amount or no reservation of rights to amend and declare an unsecured portion) may have issues with amending and obtaining an unsecured claim.

[amreynolds]

Thank you.

[tissa]

Your creditors have till 3 months after your confirmation to file. You can monitor who files on NDC.org. I'm in a 100% case too, and one of my creditors didn't file so right now it looks like my case will end about 3.5 years from filing instead of 5 years.

[amreynolds]

Thank you. I have read they have 90 days from the meeting of creditors...not the confirmation, so I filed 5/12/16, 341 meeting is 6/14/16..so its not 90 days after that (which is 9/11/16)...its 90 days AFTER the 2nd meeting..which I do not know when it is yet.

[justbroke]

Please read your Notice of Bankruptcy which should have been sent to you. On that Notice of Bankruptcy, which is also sent to all the creditors on the Mailing Matrix, it will list the "last day to file a claim" for unsecured creditors and a different date for "governmental" claims. The date is 90 days from the first scheduled 341 Meeting for unsecured creditors and 180 days from the date of filing for governmental units.

It is actually titled "Notice of Chapter 13 Bankruptcy Case, Meeting of Creditors, & Deadlines". This document is filed and served as soon as your first meeting of creditors is scheduled. This is typically served to the debtor, debtor's attorney and all creditors on the matrix within 3 days of filing.

[amreynolds]

Thank you. I got it in the mail today. The creditors have until 9/12/16. There isa a filing deadline of 8/15/16 to file a complaint (what that would be I don't know).

[justbroke]

The last day to file a complaint is for creditors which believe that their debt should be non-dischargeable. This typically doesn't happen, but you could have such a complaint if you're trying to discharge debt that was part of a marital settlement agreement or other non-dischargeable debt. It's usually not an issue for most Chapter 13 debtors.

[amreynolds]

Is the "Notice of Chapter 13 Bankruptcy Case" the only form, or did they all receive the other stuff included like the "Chapter 13 Plan and Related Motions" stuff as well?

[justbroke]

Is the "Notice of Chapter 13 Bankruptcy Case" the only form, or did they all receive the other stuff included like the "Chapter 13 Plan and Related Motions" stuff as well?

Your attorney would have served the Chapter 13 Plan on the creditors upon filing or shortly thereafter. The Clerk's Office, via the Bankruptcy Noticing Center, serves the Notice of Chapter 13 case as well as any other forms for that District. If your attorney filed any motions to value or strip liens, then your attorney would serve those appropriately (upon the creditor(s) and the Chapter 13 Standing Trustee).

[amreynolds]

Thank you I find I am quite ignorant when it comes to all this legal stuff. I appreciate every ones clarifications.