Not following whats in the Chapter 13

[outofdebt201]

Hello everyone,

Sorry if this isn't the correct spot to post this, if not please let me know and I'll move it.

My sister filed for chapter 13 and has 3 more year to pay of her debt here in Texas. Before she had to file we purchased a house together, and because she wanted to keep her other house with her husband she decided to release herself from the house we purchase together. She had this written up the in the Chapter 13 pay work. I'm sure she did this so she wouldn't have to pay for both houses. However, she is now not wanting to sign the Special Warrenty Deed to transfer the title fully over to me.

I haven't really talked to my sister in 5 years, so our falling out wouldn't be a problem if I had to have the court go after her. I know that sounds bad, but it is what it is.

Is my sister in contempt of court, can I call up the trustee and let them know.

I'm a little lost and thought I would ask around first to see what my options are.

Thank you everyone for your help.

I'm not sure if it matters but I had to file chap 7 3 years ago, and this website was very helpful. Thank you all.

[despritfreya]

Let me try to clarify the situation.

You and your sister purchased a home together. I am assuming you did not have the cash to purchase the home outright and therefore financed the purchase. Both of you signed the promissory note secured by a deed of trust or mortgage against the home so you both were equally responsible for the mortgage. Your sister has another house. She lives in the other house.

Your sister filed a Chapter 13 bankruptcy. She disclosed ownership of both homes. She disclosed the lien holder(s) (mortgage company) on the home(s). She disclosed that you are the ½ owner of one of the homes and are also on the loan associated with that home.* Lastly, she advised the court and her creditors that she is taking a homestead in the home she lives in.

Your sister’s chapter 13 plan probably calls for the “surrender” of the co-owned home and probably states that payments to the lender are being made by the co-owner (you).

Assuming the above is correct and there is no specific bankruptcy court order directing her to sign a deed to you, the “surrender” is not to you - it is to the lien holder. In essence, by surrendering, she has taken her name off the loan, not the property*. From the lender’s point of view, the lender doesn’t care and won’t foreclose to complete the “surrender” because there is someone else (you) making the payments.*

Bottom line here is that, unless you have a specific court order directing her to transfer her ½ interest in the property to you, she 1) is not in contempt of anything and 2) cannot be forced by you to do anything. You should contact a bk attny who also handles real estate matters, such as quiet title actions. Just remember, you cannot “sue” her outside of the bk court without first getting bk court permission.

*Please note that I am assuming you and your sister purchased the property sometime after you filed your Chapter 7 which is probably wrong since you state you haven’t really spoken to her in 5 years. If purchased before you filed bk and you did not reaffirm, you are no longer responsible for the loan either. However, so long as payments are made the lender won’t foreclose.

Des.