Please forgive the length...I tried to only list relevant details here.
My now ex-husband and I filed chapter 13 in October 2006. We had a setback in early 06 and got behind on our mortgage payments by 3 months x $917. I was 4K in debt. He as at over 100K.
Our plan was set up on a 60 month term at $260/week (with $917 a month being paid towards the mortgage). As I was self employed with no "payroll", his wages were garnished. Three years into the 13, he wanted a divorce. I left him the house, moved back home 200 miles away and he filed. In the divorce decree he was ordered to make timely payments on the bankruptcy until it's discharge and then obtain re-financing on the home at which point I would sign a quit claim deed. Everyone felt this was fair as my 4K credit card had been paid at 29.16% already and I was leaving the home to him. Seemed simple.
Next month is the end of our 60 month term. I hadn't followed the payments online for months...when I did check in for the first year or so he was seeing that they were paid...but today I get a notice of dismissal. "Debtor is in material default." I check online and see that he missed a couple of payments and 4 or 5 were less than $260 however it didn't amount to much...nevertheless, When I add up the remaining balance owed on unsecured debt (at 29.16%) it is around 8800.00. Somehow we were not adding this up properly.
I contacted our bankruptcy attorney which we still share (they had no problem representing us both as long as we were amicable.) Attorney says he needs to send me a modification of plan form to sign which he will send to in, and creditors will have the opportunity to either accept a lower percentage (attorney proposed 10%) or claim they want it all in which case we are apparently dismissed.
Questions I couldn't get a straight answer from from my attorney and I'm afraid to push too hard on because I don't want a conflict of interest at this point:
1) The trustee sent my income tax refund to me this year when we were told we would not get refunds for 5 years...I didn't expect it but got a check for 1461.00. I assumed this meant the money as unnecessary to fulfill our obligations. I see now my ex got a check for around 6600.00. Why? Why did the trustee not keep our returns to pay on unsecured debt which we are now defaulted on?
2) What are the chances normally that a modification of a plan are accepted? Sure they can come after us for 100% of the balance afterwards but would they normally see it as a "I'll take what I can" situation?
3) As he was ordered in the divorce in a county general sessions court, do I have any legal repercussions to take him to court for defaulting, demanding he pay? I'm assuming, as I've known for over 2 years now, that if he defaulted the house is up for grabs again...
4) Is it too late to convert to a 7?
If you can answer even one question please do...I'm so disappointed right now...
My now ex-husband and I filed chapter 13 in October 2006. We had a setback in early 06 and got behind on our mortgage payments by 3 months x $917. I was 4K in debt. He as at over 100K.
Our plan was set up on a 60 month term at $260/week (with $917 a month being paid towards the mortgage). As I was self employed with no "payroll", his wages were garnished. Three years into the 13, he wanted a divorce. I left him the house, moved back home 200 miles away and he filed. In the divorce decree he was ordered to make timely payments on the bankruptcy until it's discharge and then obtain re-financing on the home at which point I would sign a quit claim deed. Everyone felt this was fair as my 4K credit card had been paid at 29.16% already and I was leaving the home to him. Seemed simple.
Next month is the end of our 60 month term. I hadn't followed the payments online for months...when I did check in for the first year or so he was seeing that they were paid...but today I get a notice of dismissal. "Debtor is in material default." I check online and see that he missed a couple of payments and 4 or 5 were less than $260 however it didn't amount to much...nevertheless, When I add up the remaining balance owed on unsecured debt (at 29.16%) it is around 8800.00. Somehow we were not adding this up properly.
I contacted our bankruptcy attorney which we still share (they had no problem representing us both as long as we were amicable.) Attorney says he needs to send me a modification of plan form to sign which he will send to in, and creditors will have the opportunity to either accept a lower percentage (attorney proposed 10%) or claim they want it all in which case we are apparently dismissed.
Questions I couldn't get a straight answer from from my attorney and I'm afraid to push too hard on because I don't want a conflict of interest at this point:
1) The trustee sent my income tax refund to me this year when we were told we would not get refunds for 5 years...I didn't expect it but got a check for 1461.00. I assumed this meant the money as unnecessary to fulfill our obligations. I see now my ex got a check for around 6600.00. Why? Why did the trustee not keep our returns to pay on unsecured debt which we are now defaulted on?
2) What are the chances normally that a modification of a plan are accepted? Sure they can come after us for 100% of the balance afterwards but would they normally see it as a "I'll take what I can" situation?
3) As he was ordered in the divorce in a county general sessions court, do I have any legal repercussions to take him to court for defaulting, demanding he pay? I'm assuming, as I've known for over 2 years now, that if he defaulted the house is up for grabs again...
4) Is it too late to convert to a 7?
If you can answer even one question please do...I'm so disappointed right now...
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