13 Dismissal???

[dwillis19]

Just had a question. I have been reading on here for years.

I am currently in a CH 13. Only reason I filed was to keep house and cars. But had to give up house to get approved. No in a lot better situation with housing and all. But cars are wearing out. Lots of repairs nearly every week. Not sure they are worth the money they are costing me.

Basically in the 13 only secured were property taxes, cars, IRS and student loans. Everything else unsecured.

Now in a position that I wonder if I should keep paying or just quit let it get dismissed and move on with my life. I had the constant wondering about the 13.

Any thoughts or experiances would be helpfully.

My attorney is clueless about what happens in real life. He makes enought he doesn't understand my situation.

[frogger]

How far along are you in your 13?

[bpokey]

Hi dwillis - I don't know the answers to your question, but i've been reading on here enough to ask the initial follow-up questions!

1. How long is your chapter 13 for and how long have you been in it?
2. Are you saying there were no un-secured's that filed a claim or was there no un-secured's at all or the un-secured's just aren't getting anything?
3. Have you discussed converting to a 7 with an attorney?

OKay - that should get the ball rolling so that the real experts can chime in.

[dwillis19]

OK
1. 23 months into a 60 month 13.
2. Unsecured that filed claim are getting 30%.
3. According to attorney cant convert becasue now we make too much.

Plan payments have me paying 25,500 over 5 years, plus fees. Only thing secured were cars and taxes. But taxes were paid by person that bought old house. So those are gone. Total unsecured not including student loans amounts to very little. Less than 3000.00

[lrprn]

Keep in mind that if you allow your 13 to be dismissed, *ALL* of your creditors will be able to start collection efforts on *ALL* your debt that existed when you filed. And to make it even more painful, the creditors and collectors can add on penalties and late fees for the time you haven't paid them each month for the 23 months you've been in Ch 13.

Getting financing to buy more reliable cars during an active 13 is a challenge but it is not impossible. Have you talked with your lawyer about this yet?

Do not walk away from two years of hard work in your Ch 13 without discussing the consequences thoroughly with your lawyer first. Even if you allow your case to be dismissed, it's going to sit on your credit record for ten years. Car financing could possibly be even harder after a dismissal than it is now inside an active 13.

Set up an appointment to talk seriously about all of this with your lawyer today.

[momofthree]

And if there was a deficiency balance on the house you gave up, you would owe that as well.

If you have a regular W2 job (not self-employed), you can bet that those creditors will all line up to begin garnishing your wages, levy'ing your bank accounts, etc. They can take up to 25% of your income monthly. I'm betting that what you're paying out now is already less than that.

Instead, ask your attorney about surrendering your vehicles (if they are financed), and securing financing for a new(er) vehicle. It is possible to buy a new car while in ch.13, you just have to obtain trustee permission first.

[ValleYum]

Wages can't be garnished in Texas except for child support (UNLESS the OP works for an out-of-state company then Baumgardner vs. Sou Pacific 177 S.W. 2d 317 could come in to play).

Once the money is in the OP's checking account - it can be garnished - making paper checks a necessity.

[dwillis19]

Still considering this. Attorney gave us about 5 minutes. And basically told us no to a different car. And dont quit. Both me and my wife have just started getting really big wages. We both got new jobs a few months ago, told attorney, sent him check stubs and he said lets see if trustee notices. Really regretting our choice of attorney now. But when we filled, I was unemployeed with benefits running out. Before 341 meeting my wife was laid off. Then 6 months later when we had confirmation, she had a small job as did I. And we yes we did give up house, no arrears. Turns out the mortgage company never paid of a mechanics lein on property. So 5 years into owning house mechanics lein called in and we either had to pay balance or give up. Mortgage company on the hook for arrears. So we walked away and lost our land in the process. Anyway, Has anyone else just decided to quit a 13?

[frogger]

Has anyone else just decided to quit a 13?

People walk away from Chapter 13's all the time. It's easy to do, just stop paying and the entire process will be taken care of by the trustee/judge.

There are consequences to staying in or dropping out.

Research all of it well and be prepared to deal with them. You can always file again.

[jetsfan2010]

I can see the argument of both staying in and letting it dismiss. If your car decided to die on you(engine blown/trasmission goes), like what happened to me, you then would have to make a change, whether financing another car or buying a beater to get around. A car isnt enough IMHO to stay in a 13.

[dwillis19]

OK. We are still thinking about it. And not sure what to do yet. There is a lot of unsecured debt that did not file a claim. Medical bills mainly. So just worried about that. All the other creditors that did fill wont be a big problem. Just still sitting here and wondering what everyone thought or their experience if they did what we are thinking about.

[IamOld]

dwillis - as I understand it, if a credit does not file a timely claim, they get ZERO, and the debt is discharged when you finish your 13 AND the stay protects you from them during the 13.

[dwillis19]

Yes. But if they dont file and case dismissed not discharged, then what?

[IamOld]

Yes. But if they dont file and case dismissed not discharged, then what?

Dwilis, unfortunately then ALL of these characters will (or at least can) come after you.

have you considered conversion to Ch 7?

[dwillis19]

Yes, But as I understand it we now make to much money for a CH 7.