Unusual Case. Am I Getting close?

[Greg0538]

I am about 2 years into a 5 year CH 13. (100%) Plan joint with with my Wife. My Wife passed away about 11 months ago. About 30% of debt was in her name only and no personal estate. My Attorney is working to get her dismissed from the CH 13 and to release me from her portion of debt. Just today I got the letter from court that the Case is dismissed against her and is now against me only. I can't talk to my Attorney today but do you think I am getting close. If my total amount is reduced by 30% I can sure breathe a big sigh of relief. I am from PA. if it makes any difference.

[lrprn]

I'm so sorry to hear about your wife. This last year must have been a nightmare for you.

US Code Title 11a Rule 1016 addresses death of a spouse during bankruptcy. See http://www.law.cornell.edu/uscode/se...6----000-.html

Sounds like your lawyer has everything under control. Depending on the amount of your debt remaining after your wife's 30% debts have been removed and the amount you've paid into the plan already, the % of payback may change. Also since now the plan is based just on your income, could you now qualify for a Ch 7? Another option...since you are two years into your plan, do you have a house, other asset with equity, or family members that could be help you gather cash for an early plan payoff if your bk district allows that?

[Greg0538]

Yes, the past 18 mos. have been the worst time of my life. My wife and I finally filed CH 13 in May of 05 and were quite relieved. By Sept 05 she was diagnosed with cancer and died in May of 06. CH 7 is not an option but If I can get a 30% reduction in the total amount owed I should be able to do a payoff by the end of the year. It is allowed in Western PA. Also a 30% reduction could still be covered by just my wages.

[lrprn]

It is so sad that cancer took your wife's life just as your finances were getting straightened out. Please accept our condolences - you must miss her terribly.

CH 7 is not an option but If I can get a 30% reduction in the total amount owed I should be able to do a payoff by the end of the year. It is allowed in Western PA. Also a 30% reduction could still be covered by just my wages.

Is your Ch 13 lawyer filing amended Ch 13 forms for you? (You are old law so are not required to go through the current Means Test but get to use your real expenses.) Do you have children or other dependents? Has your lawyer given you any idea what to expect now that your wife's debts have been removed from the case?

[CATCHMEIFYOUCAN]

So sorry to hear about your wife. HOPEFULLY you can convert to Ch7 and not pay a penny more as your income certainly took a turn! As mine did when I filed Ch13 I had only made 2 payments into the plan. All I had to do was drop one job and in a heartbeat my income took a turn and I was able to convert to Ch7 not proving a thing more but the obvious of not having twice the income I was making. I didn't have to pay into the Ch13 plan either while in the conversion!

Best Wishes, CMIYC

[Greg0538]

Is your Ch 13 lawyer filing amended Ch 13 forms for you? (You are old law so are not required to go through the current Means Test but get to use your real expenses.) Do you have children or other dependents? Has your lawyer given you any idea what to expect now that your wife's debts have been removed from the case?

I'm not sure what my Attorney has in mind next. Since we were at 100% and I contributed more than 70% of the wages to mix, I'm sure I will be responsible for 100% of debt in my name or joint debt. However with a 30% reduction in the total amount, I am on the very edge of having enough to pay it off right now with what I got from Life Insurance and what I have saved over the last 10 months. I would sure like to get one more BAD life experience behind me.