BKBiker

[helpless]

Just curious and maybe you have posted and I haven't seen it. What went wrong in the last year of your case? We just completed our first year and everything has gone smoothly, but I always feel like something is lurking around the corner. Thanks.

[bkbiker]

Yes, I am in a 60 month plan, my first attorney gave me inaccurate advice; as such, I became the executor of my late brothers’ estate which did not go through probate court as is allowed per California probate codes. There are still many unpaid and unresolved issues with my brothers’ estate; how-ever my trustee is threatening dismissal of my case if I don’t modify my plan to include all the inheritance. Well, hearing is next week, so I will have to do what-ever is decided.

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Warnings to all chapter 13 debtors with high unsecured debt & low percentage payback; any assets that you acquire during your entire 5 year plan will be considered property of the bankruptcy estate; read section 1306 of the bankruptcy code (the trustee may take this money)

Things to protect your future financial health,

Any inheritance you receive is property of the BK Estate. If you are the heirs to someone’s Will, have you name removed from the Will for the duration of your Bankruptcy, have them name a trusted friend or family member in your place. All Wills become public property upon probate so the Trustee may find out.

If more than 180 days have passed since you filed for bankruptcy as per Section 541 and you being in chapter 13 are looking at receiving a future inheritance; as long as the assets stay in probate it does not become property of the bankruptcy estate, so if possible delay distribution of any inheritance until your case is closed or 5 year have passed since the time your first plan payment was due.

Death benefits are part of the BK Estate; Remove your name as beneficiary from all life insurance, create a living revocable trust or name a relative / trusted friend.

Taxable lottery winning are part of the bankruptcy estate, don’t cash tickets in your name

Tax returns are part of the bankruptcy estate, decrease your withholding so you don’t get back anything.

Remember, that if you sell or refinance your house (without permission from the US trustee); all the equity is now part of the bankruptcy estate.

If you buy, sell or acquire any real property, that too is property of the bankruptcy estate.

Substantial increase wages may be part of the bankruptcy estate, if your expenses don’t also go up.

Be very careful if you decide to get married while in chapter 13, your spouses income may become part of your disposable income and property of the BK estate now.

The new law says you have to summit your income tax return every year and also you are subject to random financial audits now.

Don’t ever try and pay off your plan early, the trustee will keep this money and keep you in BK because this would be in the best interest of the creditors. Maybe they can shake you down for more money in the future. Fresh start to the trustee means you starting again dead broke. The trustee is not your friend!

The above information is most important to debtors with very high unsecured bankruptcy debt.

Good luck to everyone.

[Jman30]

It has been my experience that the Chapter 13 experience seems to ebb and flow between good times and bad times. When I first filed, it was a huge relief. Everything went fine for a month or two. Once the claims started coming back in, it was a nightmare. Plan had to modified three times, I was meeting my lawyer every week, pulling my hair out at night.

Once the case was confirmed, things seemed to go really smooth for around 8 months. Then I got hit with a ridiculous Relief From Stay from Ford Credit that I had to deal with and I had to deal with a car accident and no money to pay for repairs not covered by deductible, etc.

Right now, it is going smooth again. I am trying to stockpile as much money in reserve as I can to weather the next storm better.....

[aa06a47]

It has been my experience that the Chapter 13 experience seems to ebb and flow between good times and bad times. When I first filed, it was a huge relief. Everything went fine for a month or two. Once the claims started coming back in, it was a nightmare. Plan had to modified three times, I was meeting my lawyer every week, pulling my hair out at night.

Once the case was confirmed, things seemed to go really smooth for around 8 months. Then I got hit with a ridiculous Relief From Stay from Ford Credit that I had to deal with and I had to deal with a car accident and no money to pay for repairs not covered by deductible, etc.

Right now, it is going smooth again. I am trying to stockpile as much money in reserve as I can to weather the next storm better.....

Jman..I am curious as to why the plan changed just because claims started coming in? Are you talking adversarials complaints or just when the creditors started putting there amound owed into the system. I wouldn't have thought claims would have anything to do with disposible income?

I am trying to stockpile as much money away as I can as well. Did good the first month, but the second month had to draw out all my stockpile for an emergency repair. (Good thing I had that stockpile, even though it wasn't very much). Hope I can go several months with no emergency situations that cost cash. I feel like I'm in a heat wave with no cold water to drink.

[Armmick9]

BK when you said "The new law says you have to summit your income tax return every year and also you are subject to random financial audits now", is that for people who file under the new law?? What about us that filed under the old law?

[Jman30]

Jman..I am curious as to why the plan changed just because claims started coming in? Are you talking adversarials complaints or just when the creditors started putting there amound owed into the system. I wouldn't have thought claims would have anything to do with disposible income?

Maybe I didn't explain myself well. It was a few reason why the plan changed. One was because of claims - the mortgage was not part of the original filing, I was going to pay that outside of the plan. They filed a claim to be included, which drastically increased my payment. Second, I disputed a claim from the Ohio Department of Taxation. They said I owed over $4,000 in back taxes, it was really only $500. I won on that one, and the plan had to be modified again, down this time. Then the third time, the Trustee increased my payback % from 8% to 11%.

So in the span of a few weeks, my payment changed three times. It took my employer months to catch up with all the different wage garnishments that were coming in. I had to send money orders to make up the difference until my employer got the amount right. It was a real mess the first month or two.

[bkbiker]

Hi,

I am pretty sure that is for the new laws, and the audits won’t start until 18 months from the change to the new codes which became effective in October 2005

If you filed under the old laws, everything is as it was

Take care,