Taxes/Gambling/Chapter13

[mel22nv]

So I posed this questions some time ago before the site went down and reappeared and we all had to change our user names as everything was lost. So I'm retired disabled vet, was approved for SSDI this year and in active Chap 13. I suffer from PTSD/Depression/Anxiety not an excuse just stating the facts. Was approved for SSDI was very depressed started gambling at local casino a lot. Won and lot played it back and have the W2G's to prove it. Made an appointment with my current attorney and let them know everything. I stopped gambling but I even took them copies of the W2G's (received SSDI backpay) did not miss Chap 13 payments I also used some of the funds to do some upgrades to my home. (landscaping, flooring etc) things I needed done that I could not do myself. Ok so fast forward my rough taxes show my income from gaming is 6 figures, (losses equal winnings). I have to provide copy of taxes to Trustee. I also will owe about $3K. I'm in a 13 because first attorney said stop paying mortgage (tried to fit me in a Chapter 7) but my Disability from the VA was used in the means test in 2017/18. What I'd like to do is (mortgage modification to get my VA home loan out of this Chapter 13) dismiss the Chapter 13 and file a Chapter 7 (new Haven Act) then set up repayment with IRS? Is it doable? Do I need to find a new lawyer? I feel like his paralegal is dragging her feet (never talk to him only her) I do not want to lose my house, but at this point I feel like once the Trustee get my tax returns I'm toast? Mind you my gambling issues were not an issue before I just think my depression/anxiety is worse.

I pay $2880 on my Chapter 13 each month. I just did a modification ($500 per mod) which will pay off arrears by end of year but I feel like I need to do a modification with lender (about $11K arrears), get my mortgage out of this 13 and dismiss and file a Chapter 7 (my income is retirement, VA disability, and SSDI now).

Please give me some insight I'm in FL worried and stressing and with my health issues I don't need any more stress. Thanks for responding in advance!

[justbroke]

There are a lot of Vets that are looking at doing exactly what you want to do; dismiss their Chapter 13 and refile a Chapter 7 using the provisions of the Haven Act. The key will be the coordination of your mortgage modification. I'd do that before exiting the Chapter 13 so that you have those protections in place.

I don't think it's a bad strategy. The Haven Act is just real new and there are only two Vets on here looking at this strategy (that number includes your).

[mel22nv]

justbroke I really appreciate your response. I think you're in FL too (Middle Dist BK) do you think I should look for a new lawyer? Don't get me wrong the paralegal is very knowledgable but they have avoided the Haven Act and I'm beginning to think they may not be the law office for me.

I feel like with an $11K arrearage I should have modified my mortgage a while ago and get it out of the Chapter 13. I'm so nervous, can't eat or sleep thinking the Trustee will dismiss once my taxes are turned in. Mind you I was gambling with my SSDI backpay which technically could not be touched but seems like this Chap 13 have been a nightmare from day 1 and I really need to be proactive and ready in case she dismiss.

Will the mortgage lender work with me or do I need trustee/attorney approval to do the modification with the lender while in Chap 13? It's so much to stress about. I really need a break and I've never had one from terminating the first attorney (who said stop paying the mortgage) to hiring the current one who promised I could do a Chap 7 as well only to end up in this crazy (higher) Chap 13! I wish the VA had someone I could reach out too. I'm checking with the DAV representatives now to see if they know of anyone that can help me get this done) Again thank you for your response. I know nobody can recommend BK lawyer online but if you know anybody that may be better please message me. Thanks

[justbroke]

justbroke I really appreciate your response. I think you're in FL too (Middle Dist BK) do you think I should look for a new lawyer? Don't get me wrong the paralegal is very knowledgable but they have avoided the Haven Act and I'm beginning to think they may not be the law office for me.

I am in Florida. I think the Haven Act is just so new, there's not many cases with which to reference and/or the attorneys are just not that familiar with how to file such a case.

I feel like with an $11K arrearage I should have modified my mortgage a while ago and get it out of the Chapter 13. I'm so nervous, can't eat or sleep thinking the Trustee will dismiss once my taxes are turned in. Mind you I was gambling with my SSDI backpay which technically could not be touched but seems like this Chap 13 have been a nightmare from day 1 and I really need to be proactive and ready in case she dismiss.

I understand exactly how you feel. I wish you could get the modification, but you have the time clock clicking on your tax return. Generally, I have seen Florida Chapter 13 Trustees let the tax return slide until about early August. That's when they file their Motion to Dismiss for failure to comply... blah blah blah.

Will the mortgage lender work with me or do I need trustee/attorney approval to do the modification with the lender while in Chap 13? It's so much to stress about. I really need a break and I've never had one from terminating the first attorney (who said stop paying the mortgage) to hiring the current one who promised I could do a Chap 7 as well only to end up in this crazy (higher) Chap 13! I wish the VA had someone I could reach out too. I'm checking with the DAV representatives now to see if they know of anyone that can help me get this done)

I can't answer the question about the modification, but modifications are done all the time inside Chapter 13s. The key is how easy is it to work with your lender and/or does that lender have an easy way to do them all online through a portal of sorts.

[mel22nv]

justbroke I'm calling the lender today hoping I can start the process. I emailed my attorney/paralegal but no response today, Monday's are the worse for getting a response and yes the clock is ticking on the tax returns I have until April 30th to get them to my Trustee. I need to get this modification started and done, I'm a wreck but I know time is wasting and I have no time to waste so I'm calling the lender today. I have several #'s but will call the one from the last letter I received. It seems like it might not be too hard but then again I have no idea what's required by them. Wish me luck I really need it and I have no idea how to pay a $3k tax bill when all my $ go to current Chap 13 and everyday bills. Nothing to do but keep at it I will not give up without a fight even though I'm exhausted!

[justbroke]

I have always wished you the best and I hope that your lender has an easy modification program.

[mel22nv]

justbroke Thanks you have and I really appreciate it. Just called the lender they cannot discuss with me unless my attorney fax letter authorizing them too; I asked them to do that months ago. This is what makes me not sure what to do. I have kept them in the loop on everything, but I feel like I'm just a number to them nothing more. Can't reach them as usual, probably due to Monday (busy day I'm sure). I'll email her and ask her again to send fax to lender, until then I think I'll call the attorney in Tampa. Thank you again

[justbroke]

Ask the attorney to email. you a copy of the letter, and then you can make sure it gets to the lender!

[mel22nv]

justbroke I just emailed them and asked for a copy of the letter. Thanks again, I'll keep you posted!