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Chapter 13 payment increase!

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    #16
    The FIL could buy the non-exempt portion of the husband's interest from the trustee and then the myriad of options to stay in 13, convert to 7, or dismiss and refile 7 would be available. The lawyer waiting until the last second was not good, but maybe it was a blessing in disguise with an unconfirmed plan/balance on hand since hubby still has no job due to COVID.

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      #17
      Hi Witchywitch,

      I was in a very similar situation when I filed BR. I had a parent who had added me to the family home deed years before I filed, all to ensure that someone else would be on the deed if anything happened medically, etc. (really dumb, in retrospect). When it came time to file I had to claim half the equity in the home, even though I never thought of it as my house and didn't live there; as my attorney said, "It's the letter of the law they care about." In the end it didn't matter in my plan (too much non-secured debt thanks to student loans), as I would be paying back way more than the non-exempt equity over 5 years.

      Hopefully you can come to a solution that works for everyone, and still allows relief in a BR plan. Good luck.

      Comment


        #18
        Originally posted by VolFan View Post
        Hi Witchywitch,

        I was in a very similar situation when I filed BR. I had a parent who had added me to the family home deed years before I filed, all to ensure that someone else would be on the deed if anything happened medically, etc. (really dumb, in retrospect). When it came time to file I had to claim half the equity in the home, even though I never thought of it as my house and didn't live there; as my attorney said, "It's the letter of the law they care about." In the end it didn't matter in my plan (too much non-secured debt thanks to student loans), as I would be paying back way more than the non-exempt equity over 5 years.

        Hopefully you can come to a solution that works for everyone, and still allows relief in a BR plan. Good luck.
        We actually claim half of the house equity because we know "legally" half of it is in his name. What we are trying to figure out is the payment we are making every month to my FIL. The trustee thinks we don't have to do that and want us to add that amount in our monthly BK payment.

        Hopefully it all works out since my FIL does not have any means of income but our payment and his Social Security.

        Thanks!

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          #19
          Originally posted by flashoflight View Post
          The FIL could buy the non-exempt portion of the husband's interest from the trustee and then the myriad of options to stay in 13, convert to 7, or dismiss and refile 7 would be available. The lawyer waiting until the last second was not good, but maybe it was a blessing in disguise with an unconfirmed plan/balance on hand since hubby still has no job due to COVID.
          Hi! I talked to them and they actually re-scheduled the confirmation till Sept. Hopefully we could come up with a solution by then that is acceptable for both parties.

          Or, we could win lottery! Wishful thinking!

          Thanks!

          Comment


            #20
            Originally posted by Witchywitch View Post
            What we are trying to figure out is the payment we are making every month to my FIL. The trustee thinks we don't have to do that and want us to add that amount in our monthly BK payment.
            The Chapter 13 Trustee would want proof of the payments without a single missed or returned payment. This would likely need to be shown through checks/debits from a banking account since cash is hard to prove. Additionally, the Trustee is correct in that your spouse has 0 legal responsibility to pay the FIL some fixed amount every month.

            The lack of the legal requirement to pay the FIL is the real crux of the issue. Not only is there equity, but it "looks" like a gift. I'll also assume that there is no "lease" or other document which shows the terms under which this agreement was made.

            It's interesting and I hope that your attorney can fashion something that works.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            I am not an attorney. Any advice provided is not legal advice.

            Comment


              #21
              Witchywitch If your FIL cannot survive without your "rent payment", maybe try this angle instead which is the approach I took in my case in an elderly parent residing at assisted living with no trustee objection:

              From the means test line 35:

              Line 35, Continued contributions to the care of household or family members. ! Includes only actual, not anticipated expenses. ! Family member must live with the debtor or be a member of the debtor’s immediate family, i.e., parent, grandparent, sibling, child, grandchild. ! Elderly, chronically ill, or disabled person must be unable to pay the expense.

              Schedule J only lists support for those living outside the home on line 19, but I assume you can put this in "Other".

              Keep in mind this doesn't help solve the equity problem.

              Comment


                #22
                I like that way, flashoflight, but worry about changing the reason "why" the debtor is giving $$$ monthly to an elderly parent. If the Trustee is "nice" I suppose the Trustee could say the reason -- supporting an elderly parent -- is sufficient to not raise the payment by that amount. But, this is another tool in the box that the attorney could consider in the grand scheme.
                Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                Status: (Auto) Discharged and Closed! 5/10
                Visit My BKForum Blog: justbroke's Blog

                I am not an attorney. Any advice provided is not legal advice.

                Comment

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