Need Advise chapter 13

[steve2008]

Hello BK Forum.

Me and my wife were forced into a chapter 13 bankruptcy here in louisiana in April of 2006 to save our house,for 48 months at $668.00 a month.I need some advise.

In our case our mortgage servicer made a claim of roughly $24000.00 on the principle balance plus arrearages of $1,736.02 when we filed in April 2006.

The IRS made a claim against us for $119.00 when our case was filed in April 2006.

My wife works for about $12.80 per hour and has worked for the same place since 1994.I am on disability social security and have been since september of 1996.

We have been faithful in our case and our last payment will be in May of 2010.One of our storage buildings burnt a few months ago and the insurance check came for $3000.00 for the dwelling.We carried the check to our attorney,since the check came in my name and my mortgage servicers name.

My attorney wanted to take the check and put it on the remainder of my bankruptcy the month before last which was at that time a balance of $6,680.00.

Our case showed we only owed to our mortgage servicer only $500.00 on the arrearages and $6,180.00 on our principle balance.

Our Attorney`s office called my wife today and said our Trustee had a problem with us taking the $3000.00 check and putting it on our bankruptcy balance,because now the IRS is claiming that my wife owes $2100.00 in taxes from the year of 2005.

Also the mortgage servicer is now telling our bankruptcy Attorney that we owed over $2000.00 in arrearages instead of their claim of the original $1,736.02 that was their original claim,that was filed in our bankruptcy that they did not show-up at the confirmation hearing to dispute.

For one my wife has never had to pay in on her taxes where she has worked in the last 15 years.She made under $24,000.00 in 2005.Now she did not file her tax return in 2005 though.

Tell me this.

How can our mortgage servicer now claim that we actually owe over $2000.00 dollars in arrearages from their original claim of $1,736.02 that was confirmed in our chapter 13 bankruptcy hearing in 2006,which they failed to dispute at the comfirmation hearing in may of 2006?

Can they charge us interest and late charges during a chapter 13 bankruptcy,even while we are protected against them,and our trustee isthe one paying them?

Also how can the IRS make this new claim from 2005 in 2009 when the bankruptcy was filed in 2006 which their claim was then $119.00 owed to them that they did not dispute at our comfirmation hearing ?

Also my wife does not make enough a year to owe them in reality and then its added to our bankruptcy after we have been in it now for 48 months?

Am I missing something here that the Attorney`s-Judges-and Trustees fail to tell people going into a chapter 13?

Any advise and your opinions of what can we do would be more than deeply appreciated.

Thank you.

Steve.

[steve2008]

Me and my wife have figured out something since my OP.

In 2006 my mother filled out my wifes income 1040 form before she died and it showed my wife owed $119.00 that we carried bankrupt in 2006.The IRS sent my wife a letter after we filed our bankruptcy saying they needed my wife to send them something to verify the $539.00 in state taxes since my wife forgot to mail her W2 Form with her 1040.

We knew we were not to contact our creditors so we did our attorney`s office in 2006 and one of our case workers at the attorney`s office where we filed got my wife to fax her the W2 Form so she could take care of getting the IRS my wifes W2 that the IRS requested.

We have just figured out our attorney`s office never contacted the IRS in 2006 on our behalf and now the IRS is claiming we owe $2100.00 in penalties and fees for not filing my wifes taxes for 2005 even though we have a letter from the IRS where they say they received the 1040 form but requested the W2 that our attorney`s office never took care of for us and we have the fax sheet where my wife faxed over the information with the W2 so it is our attorneys fault for not getting the IRS my wifes info.

We have proof where the IRS got my wifes 1040 where she filed,so the IRS can`t claim my wife did not file her taxes for 2005 that we carried bankrupt for the $119.00 my wife owed that has been payed through our plan that the trustee added another $2300.00 around 6 months after we filed that we have never been notified of.

We have proof our attorney`s office received my wifes W2 by fax in 2006 but they failed to send the IRS for us.

We have an appointment with our attorney Friday and someone has some explaining to do because we are not in the wrong they are.

Thanks.

Steve.

[lrprn]

Good to hear that you have a path to follow out of this mess, Steve. Thanks for sharing, and hope that you will come back and let us know how the discussion goes with your attorney.

[steve2008]

Good to hear that you have a path to follow out of this mess, Steve. Thanks for sharing, and hope that you will come back and let us know how the discussion goes with your attorney.

Thank you I will do.

Steve.

[steve2008]

Good news.

Good to hear that you have a path to follow out of this mess, Steve. Thanks for sharing, and hope that you will come back and let us know how the discussion goes with your attorney.

My meeting with my attorney went well.Before me and my wife went we prayed over the situation to go in our favor.When we first started the meeting the consultant talked about how we owe the IRS $2300.00 that we did not report when we filed our bankruptcy and that our bankruptcy would have to go up for the next 8 months to get it payed.I let her talk a while and then my wife with her paper trail evidence where she did file her 2005 taxes in 2006 before our bankruptcy and that the $119.00 she owed was included in our plan and had been payed off in our plan already.

We went on with showing her the IRS letter that said they had received my wifes 1040 and needed more information to validate the $539.00 where she reported her state taxes and where the IRS requested my wifes W2 in the letter.

My wife told the consultant that she had contacted the law firm and was told to fax her financial information W2 to them and where the law firm told my wife that they would contact the IRS on our behalf since we were told not to contact any of our creditors during our plan.My wife went on to say clearly this law firm has failed to contact the IRS on our behalf and now we are being blamed for not filing nor reporting something to this law firm that we have done and here is the IRS letter where the IRS received the 1040 and here is the fax where this information was faxed to this law firm in 2006 that failed to do what it was supposed to do.

The consultant about dropped her dentures and said the law firm would quickly clear this with the IRS for us and apologized .When we went in were were told before we had a chance to talk that the $2300.00 would increase our monthly payments for the remainder of our plan which is 8 more months that would add to our $668.00 a month plan.

The law firm had to accept the evidence in plain black letters with no way out.

Now the $3000.00 insurance check we received from our storage building burning down will be applied to the remainder of our chapter 13 balance and our payments have been modified down to $345.00 for the next 8 months instead of the $668.00.

Thank God for our paper trail and answered prayer.This will put an extra $2584.00 in our pockets by the end of our case.

Wanted to share my good news.

Thanks a bunch and take care.

Steve.

[lrprn]

Wanted to share my good news.

This is really good news, Steve! Thanks for sharing it with us. Be sure to come back once you are discharged so we can all celebrate together!