Can I be excluded from wife's Ch 13?

[griffin]

My wife had to file ch13 due to losing her job and needing to prevent foreclosure.
We have no joint c/c and only family medical bills. We both have a few unpaid but discharged c/c that were sold to collection agencies that we haven't paid on.

I am not on the mortgage and do not want to file since this was the primary reason to file. At the time we met with the atty, I signed the paperwork but wasn't 100% I really wanted to go forward. My c/c total about $8K including the medical bills if they could not be include in my wife's case.

After filing I got served for one of her unpaid divorce atty bills and didn't go to court. They issued a bench warrant for the $3k. I believe they came after me because we went to court last year and she agreed to pay them with her tax return and didn't. Then when they couldn't find her at her work they came for me.

The atty's assistant just tells me that 'I signed the papers and if I want off I'll be responsible for these other medical bills the atty will come after me again' of which I'm not worried about dodging those medical bills.

The paperwork was filed 1/10/11 and we haven't heard anything yet.

My questions are: 1) can I be excluded from this bk 2) what are the chances the other atty will come back on me if I am not included on the bk 3) when my wife gets another job will her income allow for a faster repayment (~$25K past due mtg,cc,atty and other bills for wife and $150k in her student loans)

Also she has a personal injury case against WM and the atty didn't fully explain how that would work if it settles during the bk. So, would the settlement $ be used to pay off these debts? Then if it satisfies them wouldn't that end the bk? Or someone said that we should try and prolong the settlement.

Thanks for any and all comments.

[LadyInTheRed]

My wife had to file ch13 due to losing her job and needing to prevent foreclosure.
We have no joint c/c and only family medical bills. We both have a few unpaid but discharged c/c that were sold to collection agencies that we haven't paid on.

I assume you mean that these bills were written off by the creditor, not discharged in a previous bankruptcy.

I am not on the mortgage and do not want to file since this was the primary reason to file. At the time we met with the atty, I signed the paperwork but wasn't 100% I really wanted to go forward. My c/c total about $8K including the medical bills if they could not be include in my wife's case.

You already filed, right? You already are a part of the bankruptcy. It's not "her" bankruptcy, it's both your bankruptcy.

After filing I got served for one of her unpaid divorce atty bills and didn't go to court. They issued a bench warrant for the $3k. I believe they came after me because we went to court last year and she agreed to pay them with her tax return and didn't. Then when they couldn't find her at her work they came for me.

I don't know how you can be held responsible to pay her divorce attorney. Did you some how guaranty the payment? In any case, the lawsuit by the attorney should be dismissed or at least stayed now that you filed BK. Make sure the attorney receives notice of your filing.

The atty's assistant just tells me that 'I signed the papers and if I want off I'll be responsible for these other medical bills the atty will come after me again' of which I'm not worried about dodging those medical bills.

The paperwork was filed 1/10/11 and we haven't heard anything yet.

You should have been informed of your 341 date by now and told where to send your first payment to the trustee which I believe is due 30 days after filing. Ask your attorney for that info.

My questions are: 1) can I be excluded from this bk

What is it you are trying to accomplish? I don't know if you can be removed from the current BK by amendment. But, you may be able to split the case into two separate cases and then dismiss your case. Or, the current case could be dismissed and she can file a new case on her own. But, the fact that you filed will still be on your credit report. The damage is done.

2) what are the chances the other atty will come back on me if I am not included on the bk

Well, if he came after you the first time, he will probably come after you again. But, are you really liable for the debt? If not, you should be able to fight him off.

3) when my wife gets another job will her income allow for a faster repayment (~$25K past due mtg,cc,atty and other bills for wife and $150k in her student loans)

If her income increases significantly, the increase would need to be reported to the trustee and the payment will probably go up. If that results in 100% of all the items you mention getting paid off before the original term of the plan, the BK will end early.

Also she has a personal injury case against WM and the atty didn't fully explain how that would work if it settles during the bk. So, would the settlement $ be used to pay off these debts? Then if it satisfies them wouldn't that end the bk? Or someone said that we should try and prolong the settlement.

Yes, if she can't exempt the settlement money, it would probably be taken by the trustee to distribute to creditors which could result in the BK ending earlier if it pays 100% of creditors. I don't think prolonging the settlement will help. Her claim against WM is an asset of the BK estate as will be any settlement received, regardless of when it is received.

ETA: You mentioned a bench warrant for $3,000. A bench warrant is a warrant for arrest due to contempt of court (your failure to appear). If the $3,000 is a fine for contempt rather than a judgment in favor of the plaintiff, then I don't believe it is dischargeable. If you haven't taken care of the bench warrant, you need to. You could get pulled over for speeding and find yourself under arrest.