In Chapter 13 and separating

[NewToBk]

Hello,
My husband and I are 27 months into a 60 month Chapter 13 plan. We have reached the decision to divorce. We live in Louisiana and have to be separated for one year before divorcing. Because we both are reasonable, we are agreeing on bills, etc, between ourselves and may wait until after our plan is complete, before we have the funds to officially divorce ---- but we cannot live together any longer.

I'm staying with my parents, but have found a small place to rent, utilities included. I have an appointment with the BK attorney next week, to modify our plan with 2 separate households. I'm bringing my lease, last year's tax papers and paycheck stubs. Can someone tell me if this is unusual? Our trustee already doesn't like us and I worry they could make this really difficult, but am not sure what all they can do. Will the trustee require more proof besides the lease? I don't want to tell my new landlord about the BK filing (he didn't run a credit check) and, if we get our plan payments reduced, I can manage the rent amount. The landlord wants to rent it with utilities included, so that he doesn't have to get the utilities out of his name, but I don't know if I have to have utilities in my name to prove that I'm renting the place.

Because Louisiana doesn't have legal separation, will the trustee need more proof other than us actually physically separating?

[4bkstuff]

I don't have the answers - but want to wish you luck going forward. I know it must be very painful.

[sassiebaz]

Why are you in a chapter 13 to begin with?

[NewToBk]

We are in a Chapter 13 as a result of very poor money management on my end. I used to have a business and neglected to get legal help in setting it up properly. I had a CPA and thought that was all I really needed, but never had guidance or legal help in keeping business and personal monies separate. Consequently, as the economy went down and my business felt the blow, I used personal credit to keep business floating. When I was served court papers from a manufacturer I dealt with, I then consulted an attorney ---- and was advised to file a Chapter 13. My husband and I always lived off credit, but we have done so well with really and truly, living within our means. We have learned to distinguish the difference between and want and a need. We have 33 more payments ahead of us and then we're done ---- and no credit card debt, no debts other than a car note and house note and the regular day-to-day life maintenance costs.

We have been married 18 years and after lots of talking (with little fighting at this point), we decided to acknowledge the state of our marriage. We could stay together for 33 more months, if we had to, but we do want to pursue separate living arrangements. We can both be frugal --- but neither of us want to live together any more and we don't want to stay together just because of the bankruptcy.

Has anyone been through this during bankruptcy? Will a signed lease be sufficient, or do I need to have more proof? I know a trustee could technically argue against anything, but do they see this often? Is this something that usually is agreed to out of court, between my attorney and the trustee or do these things end up being argued in front of the bankruptcy judge? I'm just trying to see how this has worked for others or if anyone has any advice.....

[Flamingo]

You will need to have a talk with the attorney handling your Chapter 13 as to what will occur or what needs to be done as to your situation in the state in which you reside (LA). Since you are represented by an attorney, it is he that will have to handle any changes regarding and as to approaching the Trustee with the situation. If any proof of separation or documentation is needed, he should be able to take care of that for you or advise you what to do (i.e., see a domestic relations attorney). Best of luck to you and I am sorry to hear of your situation.

[iwillriseabove]

Is there a possibility of converting to a ch. 7? My husband and I were actually already separated when we filed ch. 13. We filed together b/c we were still married and debts were all together, etc. It just made sense. And, we weren't even thinking about it at the time, but doing it that way actually helped. We had two separate households that figured into the equation. Even though b/c of our income, we were pretty much automatically at 100% payback, having two separate households helped lower what our monthly payments were b/c it lowered our disposable income. Ironically, since then, we got divorced AND remarried - to each other!! We have a year and a half to go and can finally see the light at the end of the tunnel!

[sassiebaz]

Im sorry, I guess I should have asked a more clear question. I just wondered if why you filed a 13 instead of a 7 in the first place. I too separated suring our 13 but we got back together, it was just too complicated to be apart. I would think your lease would be sufficient, but of course the Trustee could ask to see pretty much everything, ie; bank accounts, pay stubs, the whole gammet again. Good luck, and let us know what happens....