RE; MANDATORY 36-month re-payment

[shmod]

When initialing filing Chapter 13 bankruptcy lawyer did not explain the MANDATORY part of the 36 month repayment plan. Some creditors failed to file a claim. Reviewing first trustee report , asked my lawyer what would happen if they don't all file a claim. Was told "Don't worry..." Thinking we had paid our 43% back to those who filed and not aware of the MANDATORY stipulation we were hit with a modification after (18) months into plan. Now those creditors who filed were being granted an additional 43% because of those who did not file a claim....At same time our plan had to be dismissed due to no funding, Husband lost job. Now collectors are hounding us for the remaining balances on these creditors who were already paid 43% through the bankruptcy. Because they initially agreed to the 43% and were paid that amount, can they pursue the rest of the balance?

[Genenco]

When initialing filing Chapter 13 bankruptcy lawyer did not explain the MANDATORY part of the 36 month repayment plan. Some creditors failed to file a claim. Reviewing first trustee report , asked my lawyer what would happen if they don't all file a claim. Was told "Don't worry..." Thinking we had paid our 43% back to those who filed and not aware of the MANDATORY stipulation we were hit with a modification after (18) months into plan. Now those creditors who filed were being granted an additional 43% because of those who did not file a claim....At same time our plan had to be dismissed due to no funding, Husband lost job. Now collectors are hounding us for the remaining balances on these creditors who were already paid 43% through the bankruptcy. Because they initially agreed to the 43% and were paid that amount, can they pursue the rest of the balance?

I believe you'll now have to go through filing again and go for Ch 7...

I'd also either demand lawyer refund part of fees or file bar compaint for misrep/malfesence.

Finally find another lawyer, lay it on the table and see of they are willing to sort the mess...

Best wishes and keep coming back!!

[StaciMM]

If you don't go the entire process-from filing to discharge-then you lose all protection provided by the bankruptcy court. Your initial plan was to pay $X to your creditors each month, for Y months. That might have amounted to pay all unsecured 43%, but it was not contingent on paying them 43%. (The monthly payment and correct # of payments is what was important.)

Since you did not complete the plan, yes the creditors (all of them) can try & collect balance owed. The ones who received partial payment should have applied those amounts to your balance, but they can resume charging interest, etc.

On the bright side-if things have gone poorly as a result of the income loss, you might be eligible to file ch. 7 now. And, regardless of which BK is right for you-if filing again is indeed what you need to do-then any things that have come up in the interim could be included as well.