Incurred new debt after marriage in chapter 13 case

[cz3ch]

I've been in a chapter 13 case since 2012 and paying at 100%, no problems whatsoever. I discharge November 2017 so I've been just sticking to the plan and keeping my lawyer updated of any changes in income, marital status, etc.

One thing I know is that it's a "no no" to incur new debt without permission from the trustee. I got married in August and we had to include my wife's income and expenses to re-adjust the plan (which worked out to be the same plan payment). Then a few months ago my wife trades in her car (separate property purchased before marriage) for a new car (in her name) because she wanted a new car. She also opened a credit line at her bank to pay for some home repairs.

I've tried to get a straight answer on this from my lawyer but he hasn't been very helpful. I get that I'm not supposed to incur new debt, which I personally haven't. However she incurred new debt since we got married, in her name. But we live in Texas which is a community property state.

I've always walked the straight and narrow through my case and my trustee has never even so much as blinked at my case. Am I at risk of dismissal since my wife bought a new car in her name, incurring new debt? Or worse, is this something criminal that myself and/or her can be charged with?

I've googled all day for some answers but all I see is that I can "get in trouble" with the trustee but no mention of the wife incurring new debt or not.

So to recap:

Chapter 13 since 2012, set to discharge 11/17, got married in August, she bought a new car a few months ago + opened a credit line for repairs on her house (separate property purchased before marriage). What sort of trouble am I looking at? My lawyer only told me that it would potentially dismiss my case because it changes the DMI and would require a mod. Oh it should also be noted that when I filed it was solo, my wife was not a part of my life in 2012, just to clarify.

I'm so close to being discharged and now I'm literally freaking out.

Any help and advice is appreciated.

[justbroke]

Excellent question!

I would not want to believe that a non-filing spouse applying for credit, community property or not, should affect the filing debtor (you) with respect to the prohibition on obtaining new credit (without permission). You only just got married so you don't even share that much so-called community property. If she needs the room (money) to make the car payments and you are unable to provide a 100% dividend to the unsecured creditors (a 100% plan) then "that" could cause some issues.

Having wrote all that and probably scared you, this is all moot. You are in a 100% plan. You can do just about anything you want so long as you pay 100% of the allowed claims in the Chapter 13. I don't know why the attorney has you freaking out Keep paying to 100% and no one is going to complain or even care.

You are a Trustee's and (to some extent) a creditor's dream debtor. You're paying back 100%.

I think your attorney is on the fence because they don't have a straight answer. I would remind my attorney that I am in a 100% plan and that my spouse is a non-debtor with his/her own income. I would ask for a detailed explanation if the attorney states that a non-debtor spouse in a community-property State can not incur debt. The only far-fetched thing would be if you then converted to Chapter 7 before discharge and included that new "community" debt as dischargeable (very obscure).

[cz3ch]

Excellent question!

I would not want to believe that a non-filing spouse applying for credit, community property or not, should affect the filing debtor (you) with respect to the prohibition on obtaining new credit (without permission). You only just got married so you don't even share that much so-called community property. If she needs the room (money) to make the car payments and you are unable to provide a 100% dividend to the unsecured creditors (a 100% plan) then "that" could cause some issues.

Having wrote all that and probably scared you, this is all moot. You are in a 100% plan. You can do just about anything you want so long as you pay 100% of the allowed claims in the Chapter 13. I don't know why the attorney has you freaking out Keep paying to 100% and no one is going to complain or even care.

You are a Trustee's and (to some extent) a creditor's dream debtor. You're paying back 100%.

Hi JB, it's been forever. You answered a lot of my questions when I first got started. Things have been smooth sailing for the most part and I'm excited to be discharging in November.

Honestly, you didn't scare me at all, I've never heard from my trustee in the 5 years of my plan so I don't assume I'll hear from him between now and November. The car does increase our household expenses by about $300, but since I'm in a 100% plan, whatever DMI we have left over is ours to keep (note: my original claims were only 16-17k so my monthly payment is like $250 so I do have money left over between both of our incomes and I'm about to take a second job, which I will be ammending once I get my first paycheck). So that being said it shouldn't affect my plan because as you and I mentioned I'm in 100%.

I think your attorney is on the fence because they don't have a straight answer. I would remind my attorney that I am in a 100% plan and that my spouse is a non-debtor with his/her own income. I would ask for a detailed explanation if the attorney states that a non-debtor spouse in a community-property State can not incur debt. The only far-fetched thing would be if you then converted to Chapter 7 before discharge and included that new "community" debt as dischargeable (very obscure).

Funny you mention all of this. My attorney is impossible to get ahold of during the week and takes forever to respond. He gave me his cell number a while back so after posting this I decided to call him and he answered. I told him I need a straight answer and he said "As long as you are not incurring the debt in your name and it's your wife who is incurring the debt/etc and it doesn't break plan then we don't need permission". So basically he confirmed what you just wrote.

This has been on my mind for a bit now and I was getting the runaround with the lawyer, finally pinning him downed seemed to help and now the freakout session is over.

Can't wait to discharge and get this crazy mess behind me. Have to thank you and the rest of the folks here for always being supportive.

[justbroke]

I don't even think that you need to modify your Plan. This is one of those things that doesn't affect the Plan at all. I wish you the best and a nice quiet 7+ months!

[cz3ch]

I don't even think that you need to modify your Plan. This is one of those things that doesn't affect the Plan at all. I wish you the best and a nice quiet 7+ months!

I'm pretty sure you're right since I'm 100% in. Only thing I have to do is amend my I+J when I take this second job just as a housekeeping. Yes sir, thanks so much. 7 more months and I can breathe again. In all honesty it wasn't that bad. 2012-2013 was a stressball because of my old lawyer (who I fired) bloating my expense numbers and trying to manipulate me into a C7 when I really qualified for a C13. Glad that got amended and found this new lawyer. Even still, they are a hassle to deal with