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Should I get a dismissal and try on my own?


Brokeagain
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I'm married, but filed for Chap 13 seperately from my husband, since all the debts were in my name alone, and were pre-marriage, and were due to my X husband and divorce.

Since the filing 10 months ago - my new husband has had a substantial increase in pay (over 10% in salary plus another 15% in bonus money) BUT - he feels that it is HIS money, and shouldn't go towards paying off the BK. I know that I'm supposed to advise the court of an increase of over 10% in salary, but my husband has told me that he'll file for a divorce, and I'll lnot only lose HIM, but then ALL the money (and my house, and everything else!) in the process.

If I file for the Chap 13 to be dismissed - is it possible for me to attempt to contact the creditors and work out a deal to pay them MORE than they would have recieved in the BK?? Anyway to do this on my own? I have "some" money in my 401k that I can get to. I do make a decent salary, and am VERY DEPENDABLE!

I WAS never ever late on any payments prior to my Ex-husband's latest scam. Never behind on the mortage, vehicles, or CC's. Will that help any??

My EX disappeared owing hundreds of thousands of dollars - and my name was included on some of the debts - I have since cleared that up - but not until AFTER I made the decision to file for Chapter 13.

Any help would be appreciated!

Thanks!!

Brokeagain

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I know that I'm supposed to advise the court of an increase of over 10% in salary, but my husband has told me that he'll file for a divorce, and I'll lnot only lose HIM, but then ALL the money (and my house, and everything else!) in the process.

First of all, if you filed 10 months ago you filed under the old law. Under the old law, household income was not as big a factor as it is now, even in a ch 13. Did you list your spouse's income on your CH 13 paperwork ?? If you did, then his salary increase being reported may be entirely OUT OF YOUR HANDS. Yes, you are SUPPOSED to report the increase, but, the Trustees can and do also do audits. If that happens, and you have not reported the increase voluntarily, you could wind up in more trouble with the Trustee.

Your DH's ridiculous threat shows a complete lack of understanding of the Bk process and the law. Just because he makes more money does NOT mean that any of "HIS" money would go to your bankruptcy payments. However, it MAY mean that what YOU pay will be increased and your DH will have to pick up more of the normal living expenses. If he's unwilling to do that much, then maybe a divorce isn't such a bad alternative :roll:.

If you cannot work out any 'deals' with your creditors, then you could wind up with lawsuits and judgments and I doubt your DH would be too pleased about that either, they could put a lien on your home. Don't sacrifice your 401K to pay debts. You'll pay a 20% tax penalty for early withdrawl, not a good idea.

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I did tell the paralegal about the increase in pay, but she told me that since it was not "more than" 10% not to worry about it. He just recently got the bonus checks that I have NOT reported.

As far as "his" money - he's really not a BAD guy - but is from a REALLY REALLY poor family, and for the first time in his life feels like he's breaking that cycle of poverty, and is devistated about having to pay for my EX's disappearing act. Something that neither one of us had anything to do with - and really aren't at "fault" for. Make sense?

I don't think that if I called the attorney and said - hey - we got a bonus - they'd say - oh no problem - put it in the bank for a rainy day!! I think that they'd add it to the bankruptcy - and we'd STILL end up behind at the end of 3 years!

Thanks!!

Brokeagain

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If it's just this bonus, it probably won't make a huge difference then, it's not his regular income unless it is the practice of his company to do so and he can anticipate them. Where I work, you might or might not get a bonus, and there's no way to know what you'd get if you were lucky enough to get one.

The bonus would probably be added on to your yearly household income numbers, which could raise your payments, if there was a re-evaluation of your budget.

I guess I can understand where he's coming from considering his background, so yeah.. it makes more sense. How is it that he is paying anything into your BK though if you make a good salary ??

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I guess because TX is a joint debtor state - they automatically considered both incomes. I'm really not sure - but if it would have been calculated on mine alone - I could have done chapter 7. The house is in my name alone (with my parents as co-signers) along with a vehicle - and all of the 50k in debt. Basically - he had little to no "meaningful" debt - so we didn't file under him, so we'd be able to at least come out of this and be able to buy a house / car in the future.

Bonus' are not a given in his job - they are actually few and far between! We were actually SHOCKED that they "came through" with it. They are usually all talk - and no action.

I know that I can justify the pay increase - his expenses have increased more than the raise - in just fuel alone - and I don't even care if they raise my payments some. There are some areas that have shifted in the last year (baby is out of formula - but electric bill is higher etc.) so I may be able to rob Peter to pay Paul - but I'm scared that the attorney's don't care about anything - especially since it's been 10 months since I filed - and my case isn't even confirmed yet!

Thanks for listening!!!!

Brokeagain

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The Trustees understand that things in people's lives change, expenses change as to salaries. Even a Trustee will be feeling the pinch at the gas pump and most of them can certainly understand the increasing costs as children grow. I'm sure you'll be fine ;)

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