Divorce in Chapter 13-question???

[Nitaskeeta]

This is my first posting.. This question may have already been addressed but I can't find the answer and am hoping someone can help me. My husband and I (of 20 years) filed chapter 13 in 10/07, had a harrowing year with our trustee and a very lousy lawyer before finally getting confirmation in 11/08. Now things are rocky, he moved out 3 weeks ago and we plan to legally separate as soon as we can get funds for an attorney. There is NO way we can afford our $2300 trustee payment and each maintain a household. Can we/should we attempt to modify our bankruptcy payment? My income is <50% of his and I would fall below the median income (Virginia) now with 2 children. He would not. Do we have to actually be DIVORCED in order for us to modify or for me to convert to chapter 7? Or can this be done while legally separated? We can't be divorced for a year after legal separation.

Thank-You!

[justbroke]

Unless you are legally separated -- via a pre-dissolution order -- then you must both continue to pay.

Your only choice is to both come up with the payment, or to allow the case to dismiss. This is not a good position to be in, and I'm empathize with your position.

What you need to do immediately is contact your lawyer and tell him. You'll need to get a temporary suspension of the payments. You'll need to get something decided and rolling in that 3 months or so suspension.

The problem will be, who owns the debt. The other problem will be how is the property distributed.

[BigJohn]

This is my first posting.. This question may have already been addressed but I can't find the answer and am hoping someone can help me. My husband and I (of 20 years) filed chapter 13 in 10/07, had a harrowing year with our trustee and a very lousy lawyer before finally getting confirmation in 11/08. Now things are rocky, he moved out 3 weeks ago and we plan to legally separate as soon as we can get funds for an attorney. There is NO way we can afford our $2300 trustee payment and each maintain a household. Can we/should we attempt to modify our bankruptcy payment? My income is <50% of his and I would fall below the median income (Virginia) now with 2 children. He would not. Do we have to actually be DIVORCED in order for us to modify or for me to convert to chapter 7? Or can this be done while legally separated? We can't be divorced for a year after legal separation.

Thank-You!

If you had a harrowing year with the trustee, I would say your lawyer may have not been representing the two of you. If you have been married for 20 years, the two of you might want to reconsider what has happened and put blame were blame probably should be directed toward.

[Nitaskeeta]

Financial issues over the last year and a half definately have not helped our situation but there have been problems in our marriage for years. So, after we are LEGALLY separated I may be able to amend or modify? My husband had told me that we had to actually be divorced before any changes could be made...a year from now??. Also, the debts are both of ours, some in my name, some in his and some joint. I know I'm upside down on my car but I will continue to live in our house with the children. I'm worried that I may have too much equity in the house to keep it if I attempt a chapter 7. Do you end up splitting the debts according to whose name they're in? Should I get our house appraised? I know it will be close given the current market and where we live.

[Nitaskeeta]

I did not know you could get an emergency suspension of payments! Is this only after becoming "legally" separated? He will be moving into his own rental house in 2-3 weeks. He's been staying with his mother which has doubled his travel time to work. Sorry, I know I'm totally lost, ignorant and confused..So, we need to contact our bankruptcy atty then we should EACH have our own atty for our own bankruptcy and divorce? Should I try to find my own atty that can handle both issues? Would the atty from our ch 13 handle the emergency suspension?

[justbroke]

I did not know you could get an emergency suspension of payments! Is this only after becoming "legally" separated?

You can get a suspension in payments for any major event, including, but not limited to, loss of income.

So, we need to contact our bankruptcy atty then we should EACH have our own atty for our own bankruptcy and divorce?

You should contact your old Chapter 13 attorney and ask them how to proceed on the temporary suspension. You paid the attorney to represent you the entire length of the case. That's why your lawyer has monitoring fees in the Plan.

Should I try to find my own atty that can handle both issues? Would the atty from our ch 13 handle the emergency suspension?

Again, i would go the the Chapter 13 attorney you already paid.

I would then find a divorce lawyer who has good experience in dealing with bankruptcy debtors in the middle of a divorce.

What I was talking about earlier is legal separation which is practically a divorce. The reason it is similar to a divorce, is that all the terms of dissipation and dissolution are mostly spelled out in the legal separation. It's just like getting a divorce, only not fully completed.

[Nitaskeeta]

Thank you very much. I'm so glad I found this forum. I'm sure I will have more questions as this mess progesses.