I have to get a waiver of limitations notarized

[CaseyKnox]

Last year we had a property transfer of my late father in law's property, from my husbands name into his uncles name.

We received a profit of $0.

When we filed chapter 13 we we're informed that the three of us (My Husband, His Uncle and Myself ) need to get a waiver of limitations notarized.

My husbands uncle is giving us a hard time, not wanting to sign the paper.

The trustee has gave us one last chance to have this paper back to her, by early this week.

What happens if the uncle refuses to sign the paper?

[despritfreya]

What happens if the uncle refuses to sign the paper?

Trustee may sue to recover the fraudulent conveyance.

I am guessing that the Trustee is asking all parties to sign a waiver of the time period allowed for the filing of an action to avoid the transfer (which is 2 years from your filing date). I am also assuming that your Chapter 13 Plan currently provides payment to creditors equal to, or in excess of, the value of the property transferred and, therefore, the Trustee, at the moment, sees no reason to go after the property under a fraudulent conveyance theory.

Des.

[LadyInTheRed]

Trustee may sue to recover the fraudulent conveyance.

Which means the trustee may try to take the property from your husband's uncle.

You may want to suggest that your husband's uncle consult with an attorney so he understands the possible consequences of signing or not signing that document.

[CaseyKnox]

Thank you. He has received advice from an attorney and now He refuses to sign.

What does this mean for My bankruptcy case (other than the trustee suing for the uncles land?)

We were in foreclosure prior to filing bankruptcy, will this case the foreclosure process to proceed?

[despritfreya]

Casey,

The uncle's unwillingness to sign the waiver should not impact your Chapter 13 Plan. Your Trustee may independently seek the recovery of the transfer and then, presumably sell the asset for the benefit of your creditors (like a Chapter 7 Trustee would do). You just continue on in your Plan. Anything the Trustee recovers will be a supplement to Plan funding.

Des.

[CaseyKnox]

Thank you!

[CaseyKnox]

Casey,

The uncle's unwillingness to sign the waiver should not impact your Chapter 13 Plan. Your Trustee may independently seek the recovery of the transfer and then, presumably sell the asset for the benefit of your creditors (like a Chapter 7 Trustee would do). You just continue on in your Plan. Anything the Trustee recovers will be a supplement to Plan funding.

Des.

Also, if it does come down to that (selling the land), what happens to any excess money (if there is any) ?

For example, the property value is 100k, but our Chapter 13 total debt is roughly 40k.

[despritfreya]

Also, if it does come down to that (selling the land), what happens to any excess money (if there is any) ?
For example, the property value is 100k, but our Chapter 13 total debt is roughly 40k.

Once there are sufficient funds to pay all allowed claims in full either by the liquidation of the asset or with Plan payments or a combination of both, the Plan ends. Excess proceeds would be returned to you - or maybe the uncle - not sure how it would be split.

Des.