Suggestions on handling prose creditor!!!!

[freshstartbk]

I have lurked on this site for months and I finally decided to join and post a questions. I am not looking for legal advice just how to handle a creditor who is taking advantage of permission the judge gave him to contact me to work a stipulation.

Here is my background: I am in a confirmed new law Chapter 13. My attorney retired after confirmation and I am on my own. I had a preliminary hearing on a Motion to Lift Stay for my house on May 1, 2007 with a final hearing scheduled on May 31, 2007. The judge told the creditor to call me to work something out. I told the judge that I could pay some of the money by the 31st but I needed a stipulated order to pay the rest.

I have since received two messages from this creditor (he filed the motion pro se) demanding to know when I am going to pay him his money. He is being faintly threatening stating that the judge is expecting this money between now and May 31st. This creditor hasn't even listed the delinquent amount owed. I am having to calculate it myself. Frankly this person is an a #1 A$$hole. I have calculated $5,020 (payments plus late fees).

I am having to see if I can get a hardship advance against a 401K to get this money. The person I need to talk to is gone until the end of next week. My 401K has $5700.00 in it and I will take a 50% penalty when I borrow on that so I will only have $2,850 available to pay this creditor anyway. I made a mistake when I set up my 401k with my company and it is a big mess. I can just as easily convert out of fiasco and get another property that is in better condition, and he won't get jack from me. If he works with me, he gets his money and then some, and I refinance in March when FHA said they would.

The judge said to work it out. I have sent a stipulated order to him (creditor) and he ignored it.

Any suggestions?

[lrprn]

Glad you decided to post, freshstart!

I am in a confirmed new law Chapter 13. My attorney retired after confirmation and I am on my own.

So your Ch 13 lawyer left you high and dry without transferring your case to a colleague? Wow...not very professional. Have you contacted other Ch 13 lawyers in your area to explain you are without a lawyer? Going into court on your own without competent legal counsel in this situation could be a big risk!

Also have you let the judge know that the creditor is not working with you in good faith? You should not be figuring out how much you owe him - that's information the creditor should be giving to you!

If you can't find another lawyer, don't wait until the last minute to contact the judge and update him on what's happening with his order to work together with the creditor.

[DeadManCrawling]

Normally, these sort of "settlements" do not cover the entire amount of the original debt. . . DO THEY?

I have read a little (not much) about this type of thing and my general udnerstanding was that the settlement usually consisted of a percentage of the debt, often a very SMALL percentage. If unsecured, it only has to cover the same percentage they would get in a chapter 7.

No idea, if he is secured, how it would be handled, aside from being included in the plan.

Sounds like this person is hardballing you. At the least, I would imagine the judge will step in if something can't be worked out-and that may be a very good thing for you. Not so good for the creditor.

[workinghard]

What state are you in? It's possible there are state laws that may dictate how a creditor can and cannot contact you. The fair credit reporting act is another good place to check along with the Uniform Commercial Code. If he is in violation then this needs to be brought to the judges attention. Look up some web sites about pro se filings. I responded to a suit once this way and know in my state Illinois I was entitled to ask for a deferred payment plan with the law stating the % of the judgement I had to pay each month. The judge allowed it.

[spell]

Sounds like you're doing ok so far at working things out.
Since you're both pro se at this point, it's a pretty level playing field. If the 31st gets here and you and the creditor aren't able to agree to the amount of deficiency, just tell it to the judge on the 31st.

If you're able to honestly present:
1. You calculated the deficiency
2. He didn't agree, but also didn't show why
3. You have the means to be current (or agree to a plan to get current)
You should be ok.

But watch out, if you can't show that you're trying really really hard to work this out, he'll lift the stay.