machie Posted November 25, 2006 Report Share Posted November 25, 2006 I filed for chap 13 a year ago due to an accident, also have some IRS tax issue.I had about $100,000 in Credit cards bills when I filed and about $25,000 in Irs . (Not the real $ amounts but near enough)I also have a PI lawsuit going on from where I got injured no $ value yet cause I'm still being treated. (just getting disability & workmans comp now)I went chap 13 cause my attorney told me they couldn't touch that lawsuit, lo and behold after the 1st meeting the trustee wanted to put a lien on the PI case for the value of, even after I would pay be paying 150 a month for 3 years, and try to settle things out with the irs.Well a year later after paying nothing came good with the irs an my lawyer told me the trustee would probably get the lien. SO he suggested I withdraw so maybe somehow I can deal with the creditors on my own for less or some type of plan.Since withdrawing I spoke a with the Irs (they're checking to see If I can be put on noncollectable status (praying)). Can the trustee get this lien for the full thing even if my pi case isn't near settling yet ? (I might be able to deal with the IRS), or did I just have a ******* lawyer that just took the quick bucks and threw me to the curb ??To think I would have been done in 2 more years and walked away now..grrrrrrrrrrrrI just dismissed the case about a month ago, could I get it re-stated? Link to comment Share on other sites More sharing options...
momof5 Posted November 26, 2006 Report Share Posted November 26, 2006 As far as I understand it, you have to wait 6 months to refile BK....but there must be other ways to do it...my brother had his BK dismissed for non-payment and it was reinstated the next month (but they had reduction in pay issues that I think the trustee took into consideration).Also consider this...if you cannot reinstate the previous BK, then when you refile, you will now have 2 BKs on your bureau.I am not sure about the issue regarding a PI lawsuit. I know the trustee can and will take a payout of a lawsuit. I sued my first BK lawyer. When it was settled for $50K, the trustee changed my plan from a 0 pay plan (ie: unsecured creditors got nothing) to a 50% pay plan, gave my lawsuit atty her $18K, paid of my BK and gave me the $10K in change. I do have a question for you to review....You are on disability and have little income. Did you consider a BK7? It would be discharged in 3 months and then your PI suit wouldn't be done yet. Besides, you haven't won yet....until you do, it is imaginary money. Link to comment Share on other sites More sharing options...
machie Posted November 26, 2006 Author Report Share Posted November 26, 2006 I do have a question for you to review....You are on disability and have little income. Did you consider a BK7? It would be discharged in 3 months and then your PI suit wouldn't be done yet. Besides, you haven't won yet....until you do, it is imaginary money.I didn't convert it to chap 7 because the attorney told me they would get an automatic lien on the case. So the case was dismissed in the end of October. Link to comment Share on other sites More sharing options...
LadynRed Posted November 27, 2006 Report Share Posted November 27, 2006 You can't reinstate a dismissed BK, you will have to re-file.The lawyer that told you the PI lawsuit was untouchable was just flat wrong. Because it is money that you would be owed at the time you filed, even if you don't get paid for 20 years, the Trustee can reach that money to pay your creditors. You need a better BK lawyer, but I don't think there's any way you're going to stop a Trustee from getting a lien on your PI settlement. Link to comment Share on other sites More sharing options...
momof5 Posted December 2, 2006 Report Share Posted December 2, 2006 Lady,My brother had his dismissed BK reinstated. It can be done, however, I believe there must be extenuating circumstances. I don't know for sure. Link to comment Share on other sites More sharing options...
Recommended Posts