Results 1 to 3 of 3
  1. #1
    Join Date
    Feb 2008

    Default Chapter 13 And Divorce

    Let me first say I am so glad that I have found this site. I'm not sure whats going to happen from here so I'll give you a little background. I currently live in the State of Nevada and a little over a year ago my husband and I filed a chapter 13 bankruptcy with our monthly payments being set at $2275.00 a month at a 100% payback for a term of 5 years. Given the rural nature of where we live the living expenses and medical expenses were extremely under budgeted by the IRS standards. We are scheduled to pay our first and second mortgage outside the bankruptcy plan at the present time. So far we have not become delinquent with the house but given the large payment to the trustee it is became increasing difficult to keep it that way.

    Since filing for bankruptcy my husband and i have decided to divorce. I am maintaining the house and joint custody of our minor child. He has taken up residence elsewhere. The bankruptcy payment is so large we can not assign it to any one person, and even if we split the payment it is still high for either of our individual monthly take home pay. I don't want to loose my home, which is why we have struggled to maintain the payments, and since seperating it's even harder to make that payment and a payment to the bankruptcy court as well. At the present time there is no equity in the home.

    I suppose what I am asking is what happens now? Is there the possibility that I could convert to a chapter 7 on my portion of the debt and still maintain my home? Since the divorce is very amicable (sp) I am concerned for how this will effect my ex. Is it possible for my ex to file a chapter 7 on his portion of the debt or will there be a wait? We do not have a meeting with our attorney for another week or so and not having any idea is making me nuts. Any insight or information you can offer would be greatly appreciated.

  2. #2
    Join Date
    Dec 2007

    Default Re: Chapter 13 And Divorce

    You need to contact your ch 13 attny to see if you can convert to a 7. Sounds like a ch 7 would be in your best interest and your opportunity to get a fresh start.

  3. #3
    Join Date
    Jan 2008

    Default Re: Chapter 13 And Divorce

    Whether or not you can convert to Ch 7 will depend entirely on your non-exempt equity, income, and also on your B22C (means test). Your attorney can thoroughly review your case and advise you whether or not this is an option.

    One thing I would suggest that you ask your attorney about... check to see if any of your unsecured creditors failed to file their proof of claim by the deadline. If some of them did not, then you can actually try to modify your plan and lower the payments based on the lesser amount of unsecured debt to be paid through the plan. Also, ask your attorney to explain why you had to repay at 100%, and perhaps you could still file a motion to amend the plan to pay a lesser percentage based on your change in circumstances and increased expenses.

    1. Sponsored Links

Similar Threads

  1. Bankruptcy Issues: Divorce and Chapter 13 Bankrupcy
    By stanizzel77 in forum Bankruptcy Law
    Replies: 1
    Last Post: 07-13-2009, 04:11 AM
  2. Chapter 13: Chapter 13 and Divorce
    By rushunda in forum Bankruptcy Law
    Replies: 1
    Last Post: 05-23-2009, 05:36 PM
  3. Chapter 7: Divorce, Short Sale and Chapter 7
    By kirk blake in forum Bankruptcy Law
    Replies: 2
    Last Post: 02-09-2009, 04:25 AM
  4. Chapter 7: Chapter 7 -Vs- Divorce, Which Comes First
    By Dad444 in forum Bankruptcy Law
    Replies: 1
    Last Post: 01-27-2009, 05:33 PM
  5. Chapter 13: Chapter 13 and Divorce
    By pborycki in forum Bankruptcy Law
    Replies: 1
    Last Post: 04-26-2007, 06:01 PM
Sponsored Links

Legal Help, Information and Resources