Before you file here is my comical story

[curba]

Before you decide to file spend a few minutes and make sure it is for you. This is a long story, here is the cliff notes version:

Filed a 13 in 04. 0% unsecured pay,

Really had a hard time making up my mind. Income dropped from over 240k to about 60k.

Had about 60k in unsecured, protected a house (let another go couldnt sell as it was in Houston...terrible market) and two cars as secured.

After the cram down on the cars (which was a long battle with one lender..they actually missed their 30 day motion to respond and filled a response at 120 days which was declined) everything seemed to go ok as I was able to stop foreclousure on our home that was five months in arrears.

Let the fun begin:

The filing was done in Feb 04. Forclousure was starting and the sale (in Texas it is on the first Tues. of the month at Court House ). In april I get a letter from the banks atty notifying me of one week to vacate the house as it HAD been sold. The sale was made illegally after the filing and stay had been issued.

Contacted my clueless board certified attorney what the letter stated late on a Friday. He states "that should not have happend". No SH**. I ask him if I need to move out (angrily). He responds "I don't think so". Well Monday comes around after a long nervous weekend and he calls telling me that they are reversing the sale and the bank was sending him a letter letting me know they made a mistake and were sorry. I have the letter, it is a written acknowledgement of them violating the automatic stay in bad faith.

Tuesday I get a knock on the door from the sherifs office telling me that I had to be out of the house by the weekend or they would move me out. Tell the sherrif he needs to call my atty. Thurs they get it worked out. The next day I get another knock on the door. This time an elderly couple (Barb and Terry) are there. They proceed to tell me they now own my house and their movers will be there on Saturday (the next day) to move them in. They ask if they can hire someone to help me move out. I give them a large smile and tell them they need to contact the attorneys that conducted the sale as it was supposed to be reversed and I still had title to the house. They politely leave.

A few months go by. I get a letter from my home inurance company that they were notified by my mortgage company that I no longer occupied the house (they conduct drive by inspections of the house when payments are in arrears...more about this next).

I call the Insurance company, fax an affidavit to them stating that I indeed occupied the house along with utility bills so that they would reactivate the insurance. They do but the rates have now gone up due to my bad credit score (since I am in bankruptcy). I argue to no avail.

Summary: Mortage company violates the automatic stay (no collection activites) by sending an inspector to visually see If I lived in the house (they just drove down the street and looked), stated to the Insurance company that I no longer lived in the house and the insurance company cancels the policy (in Texas if you don't occupy the house then a normal HO policy is void and the Mortgage company is not protected), then the insurance company resarts the policy at a higher premium.
Best bart... the Mortgage company also charges my account 275.00 for each drive by

It gets better:

My taxes and insurance are escrowed. My mortage company send me an annual statement for escrow impound at the end of the year. As expected my escrow is negative. The trusteed is sending a portion of my plan payments to them..obvioulsy.. to catch up the 5000.00 behind. Now my insurance portion of my escrow is below necessary as my insurance has gone up (see above). My mortage payment goes up.... 450.00 a month. Bascially I am paying for the increase in insurance, as well as the negative escrow from the payments in arrears when I filed the chpt. 13. All this at the same time they are getting funds from my plan payments to pay these same arrears. DOUBLE JEOPARDY as well as another automatic stay violation documented in writing. Love Washington Mutual Bank!

This is were it gets real good:

Six months goes by. Washington Mutal stops taking my mortgage payments made by check. They state that based on my credit rating and the "Sizeable" amounts of my checks (mortgage went up remember) it was a bad credit risk for them due to possible bounced checks. I need to use either a money order (for a fee) or use pay by phone (for a fee of 35.00 per month). HMMMMMM They also return my last two checks to me.

So now I am two months more in arrears. A week goes by and they file a motion to lift stay as I "haven't been making my monthly payments". Contact my attorney and he attempts to steighten it all out. Two weeks go by and I get a notice that the stay had been lifted due to failure to respond. Attorney responed, the court lost the emailed response, found it, fixed it, apologized, denied the lift. During the two weeks Washingto mutal sold my house AGAIN. During the next couple of day getting all this mess straight again I had to be out of town on business... wife was with me. Get home and my neighbors tell me that an elderly couple had moved some furniture into my house?

Barb and Terry were at it again. This time they had the lock changed and had helped themselves in. Left a note for use on our kitchen counter telling us to be out ASAP. Contact my ATTY., he calls the sherriff, they arrest them for trespassing even though they had a foreclosure bill of sale. Never heard from them again. Anyone need any antique furniture?

Bank again undoes the sale, send letter of apology etc. Tells me it is now ok for me to pay by check. Gee thanks........ County deed records to this day still list them as title holders in lue of my mortgage company or myself.

This is just the first 12 months. I have not even gotten to the part about the cars, credit reports, wage garnishment attempts, increased income etc. this is the best part to come....

This is not a joke but is truley our unbelivable experience. If interested I can give you the next chapter. Think twice before you start this nightmare. Anyone for the rest of the story?

[anonymuse]

Please, by all means continue.

But make sure you read Minny's store. Similar to yours, but lost the house.

[FilingOnMyOwn]

I'd say they're both pretty bad, but yours is much more dramatic and deserving of a made for tv movie. Please do continue... Maybe you could write a book and collect royalties.

[curba]

chapter two

Ok chapter two:

First year drags by all the time making my 500.00 monthly payment. I get a letter from the trustee telling me that I was in arrears and had been so for over 12 monts. HMM. They file a motion to discarge. I repsond with Money order payment receipts. 12 of them. Trustee informs me that I missed the first months payment even though my court documents state the first one was due in march of 04, they claim I also owed for Feb 04. I pay the dang 500, to stop the lift and then ask why it took them a year to tell me i was behind. Computer audit..........

Cars:

One of the cars as secured was a suburban. I needed a truck for business reasons. I request to the trustee to sell the suburban and buy a lesser expensive truck. I file a new budget, wait a month. No respose from the trustee. Call them. They tell me they will approve but due to my a pay increase my payment to the trustee plan will double. the 56 month term will stay the same and the remainder will now go to usecured debts that were initially being wiped out. Funny how they penalize you for making more money, selling a secured vehicle and paying them off in full faster and now make you pay off unsecured debt and at the same time only allow me to get a cheaper car. I say to hell with it and agree. During all the legal paper work the stay is lifted on the Suburban so I can sell it (had a buyer with cash). I call Bank One inform them of what is going on. They say great. Confirm my address, phone, buyers name etc. They contact the buyer coordinate payment details (next day wire transfer). That night a wrecker shows up in my driveway at 4:00 am and reposesses the car.

I call Bank one the next day. They state the stay had been lifted and they broke no laws. Now they won't work with the seller to sell vehicle until after they repossession sale auction. A week goes by and they send me a demand letter for the full (un crammed down) value of the suburban, plus legal fees, interest, repossion fees and the kitchen sink. I laugh. Court nor trustee has a clue and offer no help. Vehicle sales at auction. I get the standard bill for the difference after the sale. Hand it to the trustee, they infrom me I would need to ammend my plan (for a fee) to add these charges (which were waived once already when i filed). I say no way. Bank one sues me and now I have a judgement against me. for 11,200.00 I mentioned I had a court approved situation, written authorization and a buyer with cash in hand right?

Month 18 drive buy inspections for the mortgage company go to 325.00 per visit (see first chapter).


Chapter three to follow

[curba]

after reading this as sad as it is to me it actually is kind of great to get some of this off my chest:

Here goes three (there is only four until I go and check the mail tomorrow and we'll have to see)

Attorney sends me a letter around the one year mark letting me know that he is not my attorney any more without additional fee and I am on my own. I met him actually twice.......ever. I am devestated as his services will be highly missed as he is "Board certified" and an expert an all....


Car continued:

Bank one eventually try to garnish my wages. I live in Texas. It is illegal to garinish wages in texas unless it is done by the IRS (Federal statues allow IRS in all 50 states to use this method), only a handfull of states disallow creditors. I inform Bank One to "knock them selves out". I did mention that I am now self employed right? A week goes by and I get a message from my office manager. She says I got a letter from Bank One at the business asking for wage garnishment. It contained no court order just a notice for "MY BOSS" to authorize. Needless to say I did not authorize. Haven't heard from them again. Yet. This is against the law and probably have a case here but no attorney will touch it withour a 5000.000 retainer. HMMMM

Get a letter about a month later from my new lender on my new used truck (see chapter two) asking me to be dilligent in making payments on time as their records show I had recently filed bankruptcy and they were concerned about my financial ability to pay them. All payments had been made on time.
(Once I got the approval signed by the Court excluding the new purchase from bkruptcy it was supprisingly easy to a loan and low rate as essentially i had "low debt to income")

I replied "no problem"

Car two:

Now I am pretty tapped out in our budget with the higher inurance premium (chapter one) and higer mortgage (chapter one) and higher plan payment (chapter one) and new car payment (chapter two) so when you have an emergency you are kind of screwed. Man I am sure glad I make more money now so i can have my plan payments go up so I can still be broke. Anyway the wifes transmission goes out. 3500.00 on a car that is worth 7500.00.

Time for another replacement. We fill out the paper work to get another authorization and then it hits me..... I am self employed and set my own pay rate (within functional reason). The trustee punished me for making more money the last time around, so my thought process is then hell I take a pay cut and get the plan lowered. Smart right? Illegal..........shhhh. Fille the documents, drop my pay due "lower revenue reasons shhhh". They decline as I ..... you guessed it "now dont have enough income to support the new debt. BACKFIRE. So I call and ask if the plan would drop. DRUMROLE.......................................... .. Nope. "But I can refile to the court a plan ammendment with the filing fee and they might lower it once all the creditors approve". Notice the keyword ALL. You know the one that is unsecured that is now getting money will NOT approve. I don't waste my time.

Take her car in for the transmission repair... first I miraculously get a pay rase at work (see above). Still really can't afford it. Now you are going to have to trust me here as I swear I am not making this up( have photos to prove it), the machanic places the car on the lift over night, leaves, and during the night the lift hidrolics fail dropping the car and bending the frame. At this point it is just a joke of a situation. Car is totaled as a car in Texas with a bent frame is classified as a Refurbished titled vehicle when repaired. Therefore it is totaled, his insurance (mechanic) pays it off. Took about three months to pay it off being in Bankruptcy and all meanwhile his insurance pays for a rental ( a blessing).

Car is paid off, rental goes back, pay cash for a new vehicle (cheap new vehicle). Go to get insurance on it and the insurance quote is double now. Why..... you guessed it due to credit ("your in bankruptcy").

During all this We pull our credit. WOW what a farse. there are plenty of post of about CRB's on this board to state that noone follows the law during bankruptcy and it would take and accountant and a qualified attorney to even think of getting it all accurate. I just washed my hands of it.... forever.

The judgement from Bank One does not show the right off but the full INITIAL purrchase price of the loan. HMMM excellent.

Last one tomorrow, save the best for last..........

[lrprn]

Chapter three to follow

OH MY GOD! I am stunned and shocked at what you have been going through for the last year and a half. I dread reading Chapter Three of your story - truly you are living a nightmare.

Have you touched base with the Federal Trade Commission? They are about the only group I'm aware of that have any control over secured creditors like mortgage companies and car lenders. Another possibility is to touch base with your local congressman or congresswoman (if they aren't solidly in the hip pocket of Big Business, that is). And if all else fails, I'm betting your local newspaper or TV station would LOVE to hear this story and report on it. Nothing like letting in a little light to send the cockroaches scurrying for cover.

I wish we could do more for you than just listen to this horrible tale, but know we are here and totally sympathize with the awful, evil situation you find yourself so unfairly buried in. Share here any time - we are all here for each other when we need support the most. (And heaven knows you and Minny deserve all the support two human beings can get!!)

[FilingOnMyOwn]

Despite having 99.999% bad luck, only thing that really puzzles me about the car, is how did it become damaged from the lift collapsing? Anyways, continue...

[FilingOnMyOwn]

Despite having 99.999% bad luck, only thing that really puzzles me about the car, is how did it become damaged from the lift collapsing? Anyways, continue...

Ok, nm, the car was sitting on the frame and not the suspension, I get it. Go on

[aa06a47]

Curba, your luck has to be about to change.

One thing I am worried about is increase insurance rates. The policy is paid through February, I guess I will wait and see what happens then.

[anonymuse]

Funny how they penalize you for making more money, selling a secured vehicle and paying them off in full faster and now make you pay off unsecured debt and at the same time only allow me to get a cheaper car. I say to hell with it and agree.

I agree that you have a devastating story; however, the reality of a Ch 13 is that all disposable income goes to the plan. Your unsecured creditors were getting nada; thus, it would make sense, that with a pay change, they should start getting something. No debts are discharged until the full completion of the plan.

Attorney sends me a letter around the one year mark letting me know that he is not my attorney any more without additional fee and I am on my own. I met him actually twice.......ever. I am devestated as his services will be highly missed as he is "Board certified" and an expert an all....

What a rip off! Looks like another case of lawyer looking out for himself and not the client. Since it was a Ch 13 attorney for the duration of the plan, what does his contract with you indicate about him jumping ship? In some districts, Ch 13 attorneys can only charge the same amount and it is included in the plan. If he's jumping ship and your still paying into the plan for him to be paid, ask the trustee what can be done.

[jane taylor]

All I can say is "Holy Wow!!!!!" If you ever just need to vent, please feel free to PM me. My motto is that therapy ain't cheap, but friendship is free!

Am sending up lots of prayers on your behalf! Take care!

Peace,
jane

[aa06a47]

What a rip off! Looks like another case of lawyer looking out for himself and not the client. Since it was a Ch 13 attorney for the duration of the plan, what does his contract with you indicate about him jumping ship? In some districts, Ch 13 attorneys can only charge the same amount and it is included in the plan. If he's jumping ship and your still paying into the plan for him to be paid, ask the trustee what can be done.

You know, anon brings up a good point, and perhaps it is local rule, but an attorney just can't up and "quit" before the chapter 13 is discharged without court approval and it has to be for cause. (at lease in MO)

I would also have him petition the court for the extra funds for attorney fee's. He can do that and the money paid from the trustee's fund. (My attorney told me that is what she would do in the event there were other expenses)

[Minnymouth]

CURBA,


Sounds like you and I need to have a good chat..............

Your a fine example of "what can go wrong" in a chapter 13 and all the battles you will fight to correct things....

And I'm a fine example of a "simple Chapter 7" that goes wrong because of hidden things......

I've been told mine is a case for the records, and I'm sure yours is also.......

Who knows maybe 20/20 or Dateline WOULD FIND THEM VERY INTERESTING......

1. How the Bankruptcy Court, mortgage companies, title companies, and attorneys treats senior citizens thru no fault of their own....

2. How creditors and attorneys treat bankruptcy filers, even against the rulings of the bankruptcy court....

Would be a very interesting comparison..................

Personally, I already know I have a "legal leg."............. I have a right to sue those parties involved for their "neglect" in handling my affairs..... all of them.

I lost everything due to their neglect 9 years ago........... and lack of representation by my attorney who handled my BK....

Your attorney has failed you also.......

Hope you are under the new laws.............. he is held "responsible" for his actions under the new laws..... and even under the old laws there are penalties for him not representing you in your best. He can't just "quit" because he wants too.... The court has to release him from his obligations.

Also your creditors have "stepped over the line" by repo, contacting you, etc during the bankruptcy process under Chapter 13. All negotiations are supposed to be thru your attorney and the Trustee........... creditors are supposed to keep their noses out of it............

The mortgage company stepped over the line trying to seize the home and sell it and you in a Chapter 13 repayment plan ordered by the Court...... (the Court has to grant them the right to seize and foreclose).....

Get the opportunity, drop me a PM.....

Who knows, we might be able to "rattle a cage" or two.............legally.

Let it be known - I don't get MAD - I GET EVEN.................

[curba]

ks for all the kind words. I appreciate and it helps however I realize that I am not special and you as well as others have similiar if not worse stories. I am not looking for pitty, i know you all are not giving me any, but just to let people know what CAN happen in bkruptcy.

The car off the lift was a fluke, yep rested on the frame on the lift. Barely bent the frame but still a frame has be be straightened and therefore a total loss.........


Understand that for 6 months I debated to not file a bkruptcy. The reason is that I felt that like it or not I am the one that borrowed money from unsecured creditors and I owe it. I tried the CCCS route for a year because I wanted to honor the loans to them. CCCS is another story for another day. My atty, stated that I would go into a 0% status as he "HATES" creditors anyway. I just gave up and followed his mis advise.

I agree, you make more money (income) you should pay more. They way in penalizes you is what is the farse as they will not allow you to even save a dollar for emergencies.... the emergencies that most people charge on their credit cards


Chapter four:

Things calm down for a while. Bank One leaves me alone, Making my payments to plan on time, mortgage payments on time, we are healthy, have two beautiful kids etc... In March of 06 i get a letter from the Bankruptcy court notifying me of a motion to lift stay from my mortgage company. They include the mortgage company discovery infromation as basis. Essentially it states that I have not been paying my late payments along with my monthly out of plan payments. They list 25 months missed late payments in the amount of 135.00 a peice plus interst. They are demanding 3335 (135 * 25) plus interst in the amount of 324. plus attorney fees of 3870. Grand Total of $7569. I am in shock at this point as I have been paying my increased montly payment (see first chapters) on time by check (see first chapters) as I should. Contact their attorneys myself as I now don't have an attorney ( see first chapters). They refuse to talk to me for a couple of weeks as they want to deal only with my attorney. Finally they listen to me after I send a letter to them telling them I am on my own. Essentially they tell me that since when I filed bkruptcy i was in arrears for 5000.00 my account would not be current until I finished the plan and therfore every payment made post petition was subject to a late fee as technically it was paying for months in past tense. they tell me if I can pay the amount over 6 months they will hold their request to lift stay. I had to sign a document with them agreeeing to this as well as they put a blurb in their that stated if I was even on day late on these payments or even my plan payment to the trustee they would be able to lift stay without the normal 30 day notice. I sell a few things such as my class ring, college conference champ ring from a well known university, all my and my dads (he passed them down to me) baseball cards to get the funds. Pay the amount in person in full (montly payments arent going to work)their attorneys office in Houston (I drove six hours to them as I no longer lived in the area as I stated in chapter one that I owned a house down there at on point). I would have just mailed it but it took two weeks for them to respond to me and another two for my to have a fire sale to rase the cash. At their office the inform me that they forgot to add in all the drive by inspection fees (see above chapters) which totaled over $2300.00. They claim they need to ammend the agreement which I had signed and I needed the difference that day as it was the deadline for the agreement to be paid. Dad wires me the money and at 4:45 before the deadline they get their cashiers check. I get to keep the house........ Might be cheaper to just build a new one I am thinking.

It is July now.......... two more years of this? wow I just don't know


(as to my attorney, his aggrement states that after confirmation he is done without any additional fees being charged).... how can I pay fees as all my disposable income goes to the trustee? I am still on my own, unable to come up with a retainer for another attorney to sue Bank One (see other chapters) and help at all. THIS BANKRUPTCY HAS HELPED ME NONE AT ALL!

you guys are great to know as your stories and answeres on this forum is invaluable.

[anonymuse]

You go girl!

Now we have the Superman and Superwoman of Wacky Bankruptcies!