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Chapter 13 and Divorce, What to do?

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    Chapter 13 and Divorce, What to do?

    Ok, I am 2.5 years into a Chapter 13, all debts have been consolidated into the plan including mortgage. All payments are being garnished from my wages. Wife asks for divorce, I move out. At first we were going to mutually work out an agreement on paying the chapter 13 while she stays in the house. Now she refuses to pay any amount. My divorce attorney says he is not sure what the judge will say, my BK attorney says we need to reach a mutual decision. From what I have read online I think that the automatic stay needs to be lifted? Which has not happened yet. Our divorce is supposed to be final by the end of the month, probably not going to happen. Should I petition for dismissal, if she does not agree to pay anything? What should happen to the house? As far as I am concerned it can go. I am not really sure what I can do and neither do the attorneys in this rural area, besides I can barely afford food let alone more attorney bills.
    Any help or suggestions would be greatly appreciated.

    Thanks

    #2
    Well, since there will now be a big change to your Chapter 13 Plan (I am assuming it is in joint names), an agreement will have to be reached between you and your wife as to what to do. That is for your attorney and your BK attorney to work out. It's a shame that you are 2.5 years into the Plan already because if you allow the Plan to be dismissed, it goes back to step one before you filed and all interest, fees, etc. get added back in. Whatever you paid into the plan gets distributed to the creditors but you will stil owe them the balance, plus more. Ask your wife if she wants to be hounded by all the creditors who will come out of the woodwork if you allow the Plan to be dismissed. You need answers from both your attorneys and someone has to sit down and talk some sense into your wife. Best of luck to you...
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

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      #3
      Why are you in a 13 to begin with? Let your case get dismissed for non-payment, divorce, re-file Chapter 7 and be done with it.

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        #4
        Thanks Optimistic. We did not pass the means test for a 7. Maybe on my own I would.

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          #5
          I may be way off here...but from my readings I thought I read that a case can be discharged early if certain conditions happened. One of them being a sudden change is status (i.e. marriage). A stipulation for that was if you have paid everything that would have had to have been paid for a chapter 7, then it can be discharged. Dont quote me on that though...just something I thought I saw somewhere.

          Since some cases are 36 months and you are at 30 months...its possible you qualify for an early discharge.

          Let us know otherwise because I may be in the same boat in the near future.

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            #6
            My wife and i are separated ,we have discussed divorce as well.the bk was setup for the entire amount to come out of my check ,and the wife is responsible for the day to day bills.Thankfully she is still helping me with my bills til we get out of this.We plan to divorce in 20 months when we are through.i think the bk should have been set up different because the way it stands if she decides tomorrow to quit helping me ,i wouldnt have a leg to stand on .

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