What is the name of your state?What is the name of your state? New Jersey
Hi...and thanks in advance for any help . I am in month 28 of a Chapter 13 bankruptcy plan that my husband and I filed jointly. Due to the amount of the debt, and the amount of our disposable income, the plan duration is to be 60 months. It is NOT a 100% payoff plan. My husband and I have determined that our marriage is not workable. We are trying real hard to stick it out, pay off the bankruptcy plan, and fulfill our obligations before legally seperating. But, we are talking 32 months at this rate- and we don't know if we can make it!
There is no way we can maintain two households with the financial mess we are in. I have read, both here and in other research, that Bankruptcy Code states that all disposable income for 3 years must be paid into the plan. However, that after 36 months, that we ~might~ be able to prepay the balance left on our plan- without having to repay the debts (which were not included in the repayment plan) to our unsecured creditors. In our situation, the difference between 36 and 60 months is of vital importance- because I don't see us being able to live together for 2+ years. Family members know of our predicament and would be willing to help us make a lump sum payment at the 36 months if it would, indeed, get our bankruptcy discharged and allow us to begin divorce proceedings and get on with our lives.
My questions are these: Is the 36 month payment of disposable income a Federal rule? Or is this one of those guided by State statutes? Would there be any reference to it in our individual plan, other than the term of 60 months, that would guide me through this? If we can come up with the money after the 36 months, could the Trustee object to a prepayment at that stage? If he can, what is the likelihood that he will? Would we need to provide proof that the money for the pre-payment was not earned income? Would we be opening a can of worms in which the Trustee would likely want to examine everything under a microscope if we suddenly had $4,000.00 to send him at month 37 or 38? It's not that we have anything to hide, but in all honesty, this bankruptcy business makes me a nervous wreck. I'm afraid of losing my home, my equity, it's all I have - especially in light of knowing that I'm on the brink of becoming a divorced, single mom.
One last question....since our 36 months will come AFTER the new Bankruptcy Reform goes into effect- will that have any bearing at all on the questions I asked above?
Thanks so much for any input, it is VERY greatly appreciated!
Hi...and thanks in advance for any help . I am in month 28 of a Chapter 13 bankruptcy plan that my husband and I filed jointly. Due to the amount of the debt, and the amount of our disposable income, the plan duration is to be 60 months. It is NOT a 100% payoff plan. My husband and I have determined that our marriage is not workable. We are trying real hard to stick it out, pay off the bankruptcy plan, and fulfill our obligations before legally seperating. But, we are talking 32 months at this rate- and we don't know if we can make it!
There is no way we can maintain two households with the financial mess we are in. I have read, both here and in other research, that Bankruptcy Code states that all disposable income for 3 years must be paid into the plan. However, that after 36 months, that we ~might~ be able to prepay the balance left on our plan- without having to repay the debts (which were not included in the repayment plan) to our unsecured creditors. In our situation, the difference between 36 and 60 months is of vital importance- because I don't see us being able to live together for 2+ years. Family members know of our predicament and would be willing to help us make a lump sum payment at the 36 months if it would, indeed, get our bankruptcy discharged and allow us to begin divorce proceedings and get on with our lives.
My questions are these: Is the 36 month payment of disposable income a Federal rule? Or is this one of those guided by State statutes? Would there be any reference to it in our individual plan, other than the term of 60 months, that would guide me through this? If we can come up with the money after the 36 months, could the Trustee object to a prepayment at that stage? If he can, what is the likelihood that he will? Would we need to provide proof that the money for the pre-payment was not earned income? Would we be opening a can of worms in which the Trustee would likely want to examine everything under a microscope if we suddenly had $4,000.00 to send him at month 37 or 38? It's not that we have anything to hide, but in all honesty, this bankruptcy business makes me a nervous wreck. I'm afraid of losing my home, my equity, it's all I have - especially in light of knowing that I'm on the brink of becoming a divorced, single mom.
One last question....since our 36 months will come AFTER the new Bankruptcy Reform goes into effect- will that have any bearing at all on the questions I asked above?
Thanks so much for any input, it is VERY greatly appreciated!