13 and divorce

[dm101]

My wife and I are 6 months into a 36 month chapter 13 plan and are now divorcing. She wants to convert to a chapter 7 and walk away from everything.I would like to keep the house and continue with the plan,but with child support factored in, I cannot afford to keep the payments as they are. Has anyone tried something like this before? The reason we filled 13 was she messed up the mortgage and we were about to lose the house. There is secured debt in 13 for the house payments she missed. I would like her name taken off of everything and let me fix the mistakes she made.Can a plan be modified to take in account new costs like child support?We have a lawyer we used for the 13, I just had these questions before I wasted his time.Thanks.

[dm101]

Thanks for the advice. I need to hear these things. We have 4 kids and the support payment will be half my salary. I'm making the chapter 13 payments now and it is 95% of my net pay.She is paying the utilities/groceries until we part.I wanted to keep the house if I could get her name off of it.I don't want to complete the plan and then have her return claiming some of the equity. There is currently $70,000 equity in the house. If she didn't wait so long to tell me about the problems, we could have easily refinanced and paid off all our debt.If there was a way to have her walk away, the trustee look over the plan and take into account the added child support,maybe it could lower my repayment from about 50% of the calculated debt @ 3 years to a lower debt amount for a longer payment period.I hate the idea of giving all that equity away. I know we're allowed to keep up to $7,500 of the equity after a sale, but I know when the accountants get finished with it there wont be any $ left.
Thanks for the prayers,I appreciate them. Been doing a lot of praing myself lately.DM

[Minnymouth]

Sounds like she's trying to force you into a Chapter 7 so she can get some of the equity out of the home after the creditors are paid..............

Then she will have equity, plus child support......!!! And no bills!!!

Contact your bankruptcy attorney and discuss the situation with him... there may be options open to you....

You might be able to cut her a deal, retain her interest in the home as yours, and possible refinance while in bankruptcy to lower payments.... And of course all this would have to be approved by the Trustee.....

Do not let this woman destroy your Chapter 13 - find an option available to you..... Also let Trustee know of child support payments that may occur.....

Good luck, keep us posted, and let us support you thru all of this.......

Sometimes "a silent friend is your greatest asset"........

[Jenny]

How can a Chapter 13 payment be 95% of your net pay?

[dm101]

The payment is calculated for both of our incomes- she hasn't shared this burden with me.Her attitude is her money is her own to spend as she chooses.I don't want to lose the house so I make the payment myself. This is leaving me at a huge disadvantage when it comes to each of us saving money to go our separate ways.But it keeps the roof over the heads of our 4 kids for now.DM.

[Minnymouth]

Ok, if you filed this Chapter 13 together, I'm sure that your divorce attorney can arrange for half of the Chapter 13 plan (for your ex to pay) can be put into the divorce papers..... Check into this!!! Do no let her walk away leaving you with all the payments and then stand there with her hand stuck out for child support (so she can be real comfortable).... while you clean up the mess...

Don't misunderstand me, I believe in a man/woman paying child support and taking care of their offspring. But I also believe a woman/man that helps create a financial mess - should help clean it up....

Had you considered keep the house and your kids also.....
Many men do and are very good at it.... Then you ex would have to pay child support to you..... (whole new ballgame)... or joint custody (where no child support is needed)...

Do I believe in women paying child support? I sure do!!!

Check with you attorney to see if the Chapter 13 plan can be amended based on just your income alone... also this would include any child support payments you might have... (could possibly put you into a Chapter 7 and you still could retain you home possibly).... Only an attorney could advise you on this...

If the Trustee LETS your ex walk away free and clear and leaves you with the Chapter 13 payments "shame on him"...

I firmly believe "right is right" and "wrong is wrong"...... when it comes to women taking men to the "cleaners".....

I've seen many a man in debt up to his eyeballs (most he would never ever be able to pay for) BECAUSE of a woman and her "wants and desires"........ to live like the Jones.

And on the other end, I've seen men who are very unrealistic on what they can "really afford"..... (men and the price of their toys)...

Talk to you divorce attorney and your Chapter 13 attorney, see what optios are options are available to you.

Let us know what they tell you,

Good Luck and hope you don't get "took to the cleaners"!

[dm101]

We have an appointment next week with the bankruptcy attorney.We have to get the divorce papers in order quickly. I don't know if the trustee will ammend the plan until the divorce is final.We have no money available for a divorce attorney. This could get ugly.DM

[dm101]

At our attorneys advice we have switched to a chapter 7 plan and are waiting to see what the mortgage company and trustee do with the house. The mortgage company will move to lift the automatic stay because of a lot of arrearage.The trustee will send a realtor out to appraise the property. If it appraises high, the trustee will sell the house. If it appraises close to what we owe on it the trustee may let me buy the house back if I can get a loan. If the trustee allows the mortgage company to lift the stay, I may be able to buy directly from them without the trustee's input. I've been shopping around for a mortgage, but it doesn't look good.

[Jman30]

dm101 - How will this work? Once the house is sold and you are discharged from the Chapter 7, does the divorce proceed as normal at that point?

Or does the divorce itself continue on at the same time you are coverting to the Chapter 7?

[dm101]

We needed to clear up the bankruptcy and house issues before the divorce is actually filed to limit the use of lawyers. We offically file for divorce next week. We needed the lawyer to know what our plans were.The house is no longer an issue-it's up to the trustee to decide what to do with it. The divorce will take at least 45 to complete,the 7 plan should be discharged about the same time.The chapter 7 plan is written into the divorce papers with directions on how we plan to handle what the trustee does with the house. My wife will sign whatever it takes to walk away from this mess. We have a trustee meeting in April.I really don't know how long it takes to be completely discharged from chapter 7. We talk to our bankruptcy lawyer again this Friday afternoon. I think if the trustee sells the house on the open market, the case is closed upon the sale of the property. If that's the case, mortgage companies have said I have to wait until discharge before they can offer me a loan. I was hoping to have another house lined up to move into if this goes bad. I didn't want to rent just to move again when I could buy. Does this rate quote sound right with a bankruptcy-7.85% for a 30 year mortgage, 5% down $1,200 closing costs? I didn't think any company would take the chance.