Deconsolidation of 13

[Universal]

Has anyone had experience with deconsolidation of Ch 13 and good bad consequences? Thaks.

[NeedOptions]

I've never heard of this term before. Can you explain what it means?

[LadyInTheRed]

Deconsolidation is the division of a joint bankruptcy into 2 individual cases.

[despritfreya]

This usually happens when there is a divorce and one spouse wants to convert to a Chapter 7, leaving the other spouse in the Chapter 13 dealing with the Plan payments. It can be done but if the debtors are represented by one attorney the proper course for the attorney is to withdraw due to a conflict of interest and refer each spouse to separate counsel.

Once de-consolidated the spouse in the 13 needs to modify or amend the Plan to surrender what ever items he/she is no longer going to pay for thus adjusting the Plan payment accordingly.

Hope that helps.

Des.

[justbroke]

I'll only add that if this is part of a dissolution of marriage, then you certainly want to make sure that this is a coordinated strategy and I highly recommend taking Des' opinion to heart that you should have separate attorneys -- even for the divorce portion. Dissolution of property in the bankruptcy context needs to be carefully done.