law suit while In chapter 13

[wooisme]

This is just a very curious question..........if a person has been in bankruptcy for 9 months under a chapter 13....(confirmed) plan and someone sues you for an amount of cash not connected to credit cards............can you add that law suit into your plan......meaning can you modify a plan to add the person you owe money to.

[CityGirl]

This is just a very curious question..........if a person has been in bankruptcy for 9 months under a chapter 13....(confirmed) plan and someone sues you for an amount of cash not connected to credit cards............can you add that law suit into your plan......meaning can you modify a plan to add the person you owe money to.

yes, you just have to pay a fee to add them.

[lrprn]

yes, you just have to pay a fee to add them.

Caution...this is correct ONLY if the judgment was granted BEFORE you file AND if the judgment was not for child abuse, illegal activity, drunk driving, etc. Those types of judgments are not dischargeable in bankruptcy.

If the judgment is awarded AFTER you file your Ch 13, then you have to figure out a way to pay it. You can't include a new debt that comes along even a day after filing to a current Ch 13 case. You can however work with your lawyer to file an AMENDED case that includes paying back the judgment.

Hope this helps clarify!

[CityGirl]

Sorry Irprn,
I should have clarified. I'm reading so much BK stuff, my head is spinning LOL

[lrprn]

Sorry Irprn,
I should have clarified. I'm reading so much BK stuff, my head is spinning LOL

No worries, CG. Bk sure is a lot to get your head around, isn't it? Sometimes trying to understand bankruptcy law is like threading a camel through the eye of a needle or trying to figure out how many angels can dance on the head of a pin!

[wooisme]

yes but how can you collect on a judgement on a person who is in chapter 13 when they are on a budget from the court.......when the assets are part of the bankruptcy.......how can they attach anything to assets that technically are protected under the bankruptcy law when really the trustee or the court rather "owns" your assets that you listed

[lrprn]

yes but how can you collect on a judgement on a person who is in chapter 13 when they are on a budget from the court.......when the assets are part of the bankruptcy.......how can they attach anything to assets that technically are protected under the bankruptcy law when really the trustee or the court rather "owns" your assets that you listed

Again, assuming that the judgment is one that can be discharged AND is attached to an asset that is a part of a Ch 13 AND the judgment came BEFORE the Ch 13 filing, then the judgment can usually be removed after your case is closed by having your lawyer file a request with the court to overturn the judgment.

However, if the judgment is rendered AFTER you file, then you are responsible for paying it while your Ch 13 is still active. It's the same situation when a Ch 13 filer has an emergency hospitalization after filing - they are responsible for paying their hospital bills.

When the judgment comes AFTER filing, often you will have to file an amended Ch 13 plan to accommodate paying on the judgment while your plan is active. If the judgment is large enough, it *may* tip your Means Test calculations enough to get you into Ch 7 territory.

[wooisme]

i guess the question is, if a person is taken to court over a civil matter while in chapter 13 bankruptcy,,,,,,and if a judgement is obtained. the assets that are "attachable" aren't they protected by the bankruptcy your currently in, because if someone tried to attach one of the assets listed on the bankruptcy...............how can they attach it if it's listed in a chapter 13 and the plan is five years..........they certainly can't TAKE an assets listed in as "asset" can they.....ultimately doesn't the federal government to a degree own the assets that you put on the list.

that's really the question here. when a person gets a judgement against you, they look for ways to collect it, how can they collect off assets if it's listed in an active chapter 13 plan.

[treehugger1]

This is an interesting discussion. What ever you do, do not, I repeat, DO NOT, leave off any creditor from your creditor/collector matrix thinking you can maybe pay them and not others. If you default, then the wolves will circle. If someone gets a judgment post BK, it is possible they can also garnish wages. I'm not saying that anyone here would leave off a creditor when they file for BK, trying to protect someone or something, but play exactly like by the rules. I've heard of cases where friends owed friends money and thought they would not include them in the BK and later they couldn't pay the person owed. The person they owed eventually filed a suit. Not a good situation.

[wooisme]

no this has nothing to do with a creditor....and even then you can do an amended plan to add in a creditor........

I'm talking about future problems from someone you don't even owe money to who can sue you for whatever........how do they attach an asset when it's an asset that is on the list and part of your "assets"