Surely, I must be mistaken

[anabanana]

What is the name of your state? FL

My former partner's Chapter 13 confirmation hearing is sked for Feb. 5. The proposed plan is for a monthly payment of $102 for the next five years.

Do I understand this correctly that if the court approves this plan, then for roughly $6,100 this bum is going to walk away with a $400,000 house (just bought it three years ago), free and clear of any debt and immune to any litigation related thereto?

Can that be possible?

If that is the case, I cannot believe people aren't screwing over lending institutions right and left. That BK on her credit won't inhibit her ability to borrow worth a DAMN with her sitting on assets like that.

That just can't be. How could a court allow that? $102 per month? What am I missing?

 

[I AM ALWAYS LIABLE]

What is the name of your state? FL

My former partner's Chapter 13 confirmation hearing is sked for Feb. 5. The proposed plan is for a monthly payment of $102 for the next five years.

Do I understand this correctly that if the court approves this plan, then for roughly $6,100 this bum is going to walk away with a $400,000 house (just bought it three years ago), free and clear of any debt and immune to any litigation related thereto?

Can that be possible?

If that is the case, I cannot believe people aren't screwing over lending institutions right and left. That BK on her credit won't inhibit her ability to borrow worth a DAMN with her sitting on assets like that.

That just can't be. How could a court allow that? $102 per month? What am I missing?

My response:

What you're missing is the fact that the house is a SECURED (or "Collateralized") debt. The payment plan is for payment of UNSECURED debts; e.g., medical bills, credit cards, uncollateralized personal loans, etc.

In other words, if the house payments are not paid pursuant to the mortgage contract, then the house goes into foreclosure, and the Sheriff will throw the bum out!

Believe me, you can't get away with a free house, or a Rolls Royce, if you file BK. Life doesn't work that way. The lenders merely foreclose on, or repossess, the "collateral" as the case may be.

IAAL

 

[bigun]

Being nosey here but, what percent payback does that represent?
Also, just because she has an asset doesn't mean she can use it at will. As long as she's in the plan, she needs the trustee's permission to borrow money.

 

[anabanana]

I'm not sure I understand about the percent of payback. The house payment was about $1200 last time I knew, but there are a couple other debts, as well. Mainly she filed the bk to avoid litigation, not because she couldn't afford to pay her bills. She's pretty pissed off that she had to turn in her leased vehicle and get rid of her Harley, but she's still installing a new swimming pool. Not been any big change in lifestyle there, I can tell ya. So does this mean she hasn't had to make house payments during this period between the filing and confirmation, and that she'll still have to make them afterwards? Obviously, I had the mistaken impression that her $6,100 was going to get her off for the whole kit and kaboodle, but now I'm told that that she'll have to pay 20 cents on the dollar on all her debt, or is THAT just on the unsecured debt?

And does all this mean that if the plan is confirmed, my own lawsuit is dead in the water and I'll never get a dime, period? So that my only hope on Feb. 5 is to present some stunning objection to the confirmation???

tnx

 

[bigun]

She'll have to stay current on the mortgage. The 20% pay back is for unsecured debt.
Don't have an answer for the rest of your question.

 

[anabanana]

As of the praecipe, there was a negative recommendation on the bankruptcy.

I spoke to the case manager with the BK court clerk on Friday, and he told me that usually means the BK will not be confirmed, but the praecipe was weeks ago. A lot could have changed.

I got an order that I have to respond to the objection to my claim, and also object to the confirmation by X date. Presuming I do those things, according to the clerk, the judge will probably NOT confirm the BK, and will instead set a hearing on my objections. I can't confirm this anywhere. Anyone know...?

And if it is NOT confirmed at this hearing on Feb 5, am I still in indefinite limbo with respect to the other court action, or can we proceed with it? I'm not sure when NO means no with a bankruptcy... she's not broke, she just doesn't want to deal with the litigation. Perhaps that's becoming clear to the trustee folk by now...

Any insights?

 

[minkyboodle]

What does the trustee give as a reason for the negative recommendation? You need to know that.

If it gets confirm, you are not going to be able to proceed with your lawsuit. You are screwed. If you don't know how much he owes you already, you'll probably never find out now, and even if you find out, you won't get it anyway.