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How to pay for a lawsuit against me unrelated to BK13?

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    How to pay for a lawsuit against me unrelated to BK13?

    I need advice. I am being sued by a new neighbor that just purchased the house next door. She is suing me to remove my porch, despite the fact that it was included as part of an easement written in 1970 and states it is "forever" to all heirs and assigns to allow ingress and egress and to cross her property to get to the street. Her new house was built in 1970 and my house has been here since 1811 with the porch added in 1910. Same concrete, same footprint She refuses mediation and basically bought the house with plans to force me to remove my porch. She is a very wealthy woman and believes that if she wants it, she can have it, regardless of the easement. She has started extensive exterior rennovation that includes a new wooden porch with a roof, eaves, and guttering that she literally built UNDER my existing porch roof, assuming she will win, I guess.

    Anyway, it is a lawsuit that she probably cannot win, but which I had to hire a real estate attorney to defend, as my house would lose considerable value if we couldn't leave the house out the back door; fire hazard; etc etc., not to mention the permanent easement and the fact we have used it for the 21 years we have lived in our house. However, I am up over $16,000 in legal fees which my elderly parents and adult children have helped pay for so far, along with a small Retirement 401k I cashed in. I just got another bill for $6,000 and we were in court today for another hearing, to add to the cost. (She used a back loader to dig out her yard, exposing my foundation and cracking it in the process...not structural, but had to get an injunction to allow the damage to be repaired)

    My Question: I told the attorney today that I have no more money to pay him, as I have no more retirement funds to tap and only earn $34,000 per year. My family is done, as well. He agreed to accept $500/month until the current and future expenses are paid off. Can I get my $4900 BK reduced by that $500 to pay him or am I going to have to find a second job? And do I need to notify my BK attorney about what is going on with this unrelated lawsuit? Any input would be appreciated.

    #2
    You may be able to modify your plan to allow you to pay the attorney fees. You need to talk to your BK attorney to determine whether that is an option.

    Some questions that will help determine whether there is room in your plan for modification: How much of the $4900 is for your mortgage? Did you have any non-exempt assets that you are paying for in your plan? Are there any other secured debt payments included in your plan payment? Is there any other part of your plan payment that is going to anybody other than your mortgage, your attorney, the trustee and unsecured creditors?

    ETA: Have you checked whether title insurance will cover this isssue?
    Last edited by LadyInTheRed; 01-22-2013, 05:36 PM.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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      #3
      And you should counter-sue as well for your time and expenses in defending yourself against her actions.
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

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