13 may be dismissed SOON

[tbon]

Here's my situation, hope someone will answer with sound advice.

Into C-13 2 1/2 yrs. 100% payback

2300. monthly payment, now behind 2 months.
Tried to tell attorney when we were filing that we could not make 2300. payments, but could 1800. monthly, she just laughed basically.

Have not received dismissal yet, just now contacting attorney as to why behind. They have not inquired nor has trustee...

In 13 plan~

approx. 90K left in unsecured debt.

mortgage out of plan, paying as normal, have not missed any payments.

1 vehicle out of plan, paying as normal, have not missed any payments.

no IRS dues, as of yet, still having tax 08 done,do not expect to owe.

IF we get dismissed, seems to me that we could negoitiate with the unsecured creditors and pay them all off in 6-9 months. IF they settle.
I figure in this market economy, they probably will.
As long as I get them to give me a WRITTEN SETTLEMENT STATEMENT, then not even a garage debt collect agency can come back at me (legally) right?

As far as credit goes, I do not intend to use CREDIT again, haven't had to don't want to.
So if it took me years to fix CR, SO WHAT!

If I WAIT until they start calling, I will try to negotiate with them.
In the meanwhile, I just save as much as possible, and still paying mortgage as usual, AND car as usual...
What's the worst that could happen here?

So IF the CC's file to sue me- SO? They won't get anything, I have NO assets.
I own a VW, paid for, that's IT. It's not even worth 12K

There is only about 10K equity in my house, if I sold it today.

Can anybody tell me what if anything would happen here should we get dismissed and just sit tight?

I AM aware that I will have to pay taxes on settelment.

Say if debt settled is 13K and the rest is written off, I have to pay taxes on
77K debt settlement~ that would be my only concern. Not sure of what the tax rate would be for that.

Can anyone help me with this?
Thanks in advance.

[sdfileger]

The Trustee will not inquire, they will just dismiss your Bankruptcy.You should have notified your Attorney before this happened. Contact them and then also contact your Trustees office and let them know. Tell them you are working with your attorney on the situation.Did you let your Trustee know Prior to your confirmation hearing about the payment issues you may have?Hopefully the Trustees office hasn't begun the dismissal process. Good Luck

[EricaCallaha]

Your tax rate is completely determinate on your tax bracket. It is reported as 1099 income.

Good luck.

[tbon]

WHEW~ well found out today, after faxing our attorney a letter about our situation, that we should be okay~
She told my husband that we don't have a hardnosed Trustee....and he was okay with (especially people that have flucuating incomes, which I do), a little jig-jog in our payment being late...as long was we send him something, but still TRY to get caught up /ASAP, that he wouldn't dismiss us!

So....I sent 700. today and will send 1000. on Friday.
We were behind once before, and not a word was said to us, not through our attorney OR the Trustee~
I stuck sticky notes on the catch up payments that read~ THANK YOU SOOOO much for being patient with us, we truly appreciate it! Not sure that helped, but he seems to be an EXTRA PATIENT TRUSTEE~ hopefully that will hold this time too...I can't believe he hasn't called our attorney on it though~

She said to send her my profit-loss statement and our 2008 tax when it gets figured and she will try to have our plan ammended~ it may have to go in front of the Judge, but she didn't see a problem with it at all...hope she's right!!!! She also said that the Trustee WOULD NOT dismiss us without telling her first...guess that varies from state to state...
WHEW~ that's all I can say at this point!!!!!!!!!!!!!!!!!!!!

[lrprn]

WHEW~ that's all I can say at this point!!!!!!!!!!!!!!!!!!!!

GREAT news about yiur case not being dismissed, tbon! So glad everything worked out with your lawyer and trustee!

[tbon]

Thanks LRPRN! I am very relieved too!! Glad I live where I do! Trustee seems very patient!!

[chicklet]

Y ou answered my question??

HI,
Ive been looking for an answer to my same situation..only difference is I am just today unable to make this month payment and maybe next.. missed a few days sick leave with no pay and basically was my payment.. I have appt this afternoon with my atty and was wondering what options if any I have..thing is if I can skip one or two, I will not be able to make up because that moneys history. I think my trustee is an old bastard tho, he sends letters if Im one week late threatening to dismiss. and he objects to every modification or situation my atty files for .. Luckily the judge is cool and has overruled him every time.. I also am thinking of letting it get dismissed and refiling again after.. My payment plan started at $60k at 100% and after the claims came in that were so old, only one half claimed that I owe now $31k.. so my payment is huge, and of course they wont change it..it will just be paid off earlier..well thats b.s.. I havent even been able to buy a flipping new bra for over a year now.. or anything.. sorry for venting just looking at my best move. good luck for you!!

[tbon]

Sorry to hear about your situation Chicklet~
So far we have not been dismissed....and we are 2 payments behind.
We told our attorney, and she said she has not heard from our Trustee, and that he would tell her FIRST if he was going to do anything, and he hasn't yet. Plus we just found out we owe taxes this year....so...she is looking into amending our plan~... our attorney said something about not being "locked in"...not sure what that means~ but I figure if she isn't worried about it at this point, neither will I .... another day's worry makes the next day shorter in your life......
If your Judge has overturned your Trustee....I would think you are safe....that's where I would go anyway~ and BE SURE THE JUDGE hears from you!
I originally was worried that we had a hard nosed Trustee...but he seems to be not so bad after all~...not sure what will go here, just living day to day~ we've done all we can~ trying desperately to catch up~ two steps forward....three steps back... crazy thing called LIFE
Best Wishes to you~