Looking for input...
2 1/2 years ago we filed for chapter 13. It was a 3% plan. During the first 6 months I got an unplanned bonus from work that paid all unsecured creditors at 100%. Trustee refunded balance and started closing the case.
Durring the closing period, a secured creditor (mortage holder) revised their secured claim to a 202k unsecured claim.
We have paid under the 13 plan for an additional 2 years.
Because of income changes, my law firm re-ran the means test and we converted to a 7. (Should have been in a 7 all along).
Our 341 meeting is next Wednesday. It's a no-assest case (there really are no assests -- nothing hidden).
My lawyer called today to tell me he received a note from the banks law firm. They are threatinging to file to have the the $202k declared non-dischargable.
Their argument is that we did not follow a court order for the past two years tax returns and bonus totaling $17k (which was all disclosed in our last motion under the 13).
The bank is arguing we did not act in "Good Faith".
Note, 90 days ago, we had filed a plan modification to exclude this $17k... so the court knew about the income. We withdrew that motion and converted to the 7.
My lawyer believes we are in a very strong position... even if this goes to court. I tend to agree with him based on what I've read.
The bank/lawyer has not argued... Makes too much money; should stay in 13. Hidden assests. Rather, that we have not acted in good faith because we did not remit these incomes.
Again, we clearly pass the means test, there are no assets to liquidate, this bank has been very agressive through the 13, we are current on all payments with the 13, we remitted the tax return and bonus from the first year, we have clear expenses to justify keeping the $17k (all laid out in the plan modification under the 13)...
I would like to know what people think about our position...
HELP!
2 1/2 years ago we filed for chapter 13. It was a 3% plan. During the first 6 months I got an unplanned bonus from work that paid all unsecured creditors at 100%. Trustee refunded balance and started closing the case.
Durring the closing period, a secured creditor (mortage holder) revised their secured claim to a 202k unsecured claim.
We have paid under the 13 plan for an additional 2 years.
Because of income changes, my law firm re-ran the means test and we converted to a 7. (Should have been in a 7 all along).
Our 341 meeting is next Wednesday. It's a no-assest case (there really are no assests -- nothing hidden).
My lawyer called today to tell me he received a note from the banks law firm. They are threatinging to file to have the the $202k declared non-dischargable.
Their argument is that we did not follow a court order for the past two years tax returns and bonus totaling $17k (which was all disclosed in our last motion under the 13).
The bank is arguing we did not act in "Good Faith".
Note, 90 days ago, we had filed a plan modification to exclude this $17k... so the court knew about the income. We withdrew that motion and converted to the 7.
My lawyer believes we are in a very strong position... even if this goes to court. I tend to agree with him based on what I've read.
The bank/lawyer has not argued... Makes too much money; should stay in 13. Hidden assests. Rather, that we have not acted in good faith because we did not remit these incomes.
Again, we clearly pass the means test, there are no assets to liquidate, this bank has been very agressive through the 13, we are current on all payments with the 13, we remitted the tax return and bonus from the first year, we have clear expenses to justify keeping the $17k (all laid out in the plan modification under the 13)...
I would like to know what people think about our position...
HELP!
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