"Can I get out"

[joshcohen]

I have been in a chapter 13 for 2 years now and I have 3 years left on my payment plan. The original plan was to pay back $50 K that I transferred from a trust and payed my Dad back with. Other than that at the time I qualified for a chapter 7. The Lawyer's reasoning for the Chap 13 was he thought that they may go after my Father for the $50k that I transferred to him. My father has since passed away and I am still paying 755.00 per month and it is killing my wife and I. Unfortunately I make close to $200k per year so now I do not qualify for chapter 7. Any thoughts out there?

[jcj112562]

If you can handle all of the assorted debt that you have now, as well as the debt you did not pay back, then you can *always* move to dismiss your own case. If you are using any of the protection afforded by bankruptcy, like the sutomatic stay, for example, then that will disappear. Making 200K would tend to make it easier to deal with any debt you might have that is collectable at this point, but that would be up to you, and your attorney.

John

[newbie2]

I have been in a chapter 13 for 2 years now and I have 3 years left on my payment plan. The original plan was to pay back $50 K that I transferred from a trust and payed my Dad back with. Other than that at the time I qualified for a chapter 7. The Lawyer's reasoning for the Chap 13 was he thought that they may go after my Father for the $50k that I transferred to him. My father has since passed away and I am still paying 755.00 per month and it is killing my wife and I. Unfortunately I make close to $200k per year so now I do not qualify for chapter 7. Any thoughts out there?

You can always quit paying and have your case dismissed. If you do that though none of your unsecured debt will be discharged. Call your attorney and ask about what is your best option since you are struggling even with income higher than when you filed.

[joshcohen]

If you are using any of the protection afforded by bankruptcy, like the Automatic stay, for example, then that will disappear? Please have them clarify this statement I never heard "Automatic Stay" ever If I move to dismiss do I have protection? Need more clarification!

[FishersMike]

If you dismiss you will no longer have any protection so all the unsecured debt that you owe - you will owe - and they can then sue you to collect and then garnish your wages, etc. just like you never filed bankruptcy in the first place.

This will only probably help you if you do not have lots of unsecured debt that was paid, otherwise you would never have filed bankruptcy in the first place.

[espo1357]

I have been in a chapter 13 for 2 years now and I have 3 years left on my payment plan. The original plan was to pay back $50 K that I transferred from a trust and payed my Dad back with. Other than that at the time I qualified for a chapter 7. The Lawyer's reasoning for the Chap 13 was he thought that they may go after my Father for the $50k that I transferred to him. My father has since passed away and I am still paying 755.00 per month and it is killing my wife and I. Unfortunately I make close to $200k per year so now I do not qualify for chapter 7. Any thoughts out there?

bs post, right?

200k per year and you are worried about 755 a month.

Smart people usually make 200k/year, so why waste our time with this post?

[momofthree]

bs post, right?

200k per year and you are worried about 755 a month.

Smart people usually make 200k/year, so why waste our time with this post?

I'm dubious too. You make over $16k a MONTH and it's "killing you" to pay $755? Sounds like you got a pretty sweet deal...

[espo1357]

Thinking that the guy meant 20k a year, not 200k.

Right buddy?

[LadyInTheRed]

Thinking that the guy meant 20k a year, not 200k.

Right buddy?

I don't think so.

Unfortunately I make close to $200k per year so now I do not qualify for chapter 7. Any thoughts out there?

At $20k he'd qualify for a 7.

[espo1357]

I don't think so.



At $20k he'd qualify for a 7.

That's right, he would get the 7.

Its just too bad people have to waste time on arguably the best site on the Net.

[forgotten]

I make $100k/year and am paying $950/mo (all to unsecured), and its not killing me. If you are making twice that and paying less then you need to rethink your budget, perhaps cut back on your private jet time or something?

[bkdone]

I have been in a chapter 13 for 2 years now and I have 3 years left on my payment plan. The original plan was to pay back $50 K that I transferred from a trust and payed my Dad back with. Other than that at the time I qualified for a chapter 7. The Lawyer's reasoning for the Chap 13 was he thought that they may go after my Father for the $50k that I transferred to him. My father has since passed away and I am still paying 755.00 per month and it is killing my wife and I. Unfortunately I make close to $200k per year so now I do not qualify for chapter 7. Any thoughts out there?

joshcohen... Can you clarify? When I read your initial post, I too thought...$200K income and he's balking at $755. Please help me understand what you mean? Are you just feeling that you no longer need to stay in CH13 now that your father has passed and they can no longer go after him? I agree that you cant do a CH7 given your income. Please explain further.

[joshcohen]

Thanks for talking sh** Espo, you obviously have never made much money in your life. 200k pre tax dollars works out to a much, much lower figure when you incorporate, Life ins, car ins. rent, benefits, college fund, a Family of 4 with a wife who does not work. I will admit that I live in a posh upscale building that costs me over 2k a month in total expenses so for that I admit some I was not smart. I don't care how you slice or dice it $755.00 per month is $755.00 per month!! If I can find a loop hole to get out of it who wouldn't??? Oh and BTW I have lived a very nice lifestyle all Cash for the last 2 years. Also I feel my Lawyer mis advised me when I originally filed and treated me like a complete jerk! I have spoken to a current friend who is a BK attorney and he told me if I waited 6 more months from the date I filed I could've went 7 and been done!

[joshcohen]

Guys 200k a year is not a lot of money in today's day in age. Look I simply was looking for a loop hole based on the fact that the reason I am in this plan was because of $50 K I transferred from my bank account to my dads (from a trust fund) before I filed. Yes BKdone I was thinking that at this point being that my Dad is Dead they may dismiss it. I know I am probably wrong and have to just keep paying it. It is what it is right? You make mistakes in life and you pay for them. Just makes me upset that big business gets bailed out and josh smo has to pay every month! Also the reason I am making 200K now is because I realigned my thinking in my Salesmanship in the industry I am in. Took full curriculum courses on life and business and have increased my income from 40k when I filed to 200K in two years. Is that stupid Espo?

[forgotten]

You have 3 options to "get out":
1) Write the trustee a check a 100% of the unsecured debts that filed claims in your case.
2) Dismiss the case and attempt to settle with your creditors.
3) Dismiss the case and do nothing, wait to be sued by your creditors.

Under both options 2&3 all interest and late fees will be added to your balance from the time you filed. Under option 2 you will be issued a 1099 for any forgiven debt and will owe taxes on it as income.

There really are not any other options at your income level.