QUESTION
I just got married a year after my Ch13 started, and I am about to have a baby how does my payment change?
Asked on May 14th, 2013 on Bankruptcy - Delaware
More details to this question:
I was living with my fiance at the time I started my Ch 13. Nothing has changed except for my name on paper. We still keep totally separate financials, I still make my payment to him for my rent and utilities. I am also about to have a baby. My lawyer just told me that I have to include his income and expenses. He refuses to provide that information because frankly all of this debt is mine from a previous marriage. He's not involved. We don't file taxes together, have any credit together, not a joint bank account. Nothing. I was told that after I provide his info, the payment would balance out to what I am currently paying. How is that possible for them to say if they don't have his info? Finally, they are telling me that my payment won't change if I have a baby. It seems to me that I will have less disposable income with a dependent now to take care of. She stated that my payment is set in stone and that I am still required to make that same payment over the next 3 years left of my bankruptcy even if I don't have the means to make that kind of payment after a child. Does this at all sound correct?
6 ANSWERS
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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I don't know how informed your attorney is keeping you. If he calculated your disposable income to make payouts of 10% to unsecured creditors, then it's pretty obvious having a baby will reduce your disposable income and therefore, your plan payments. At the same time, if you don't have a prenup and you get married to Michael Jordan who makes 60 million a year, half of it being yours due to community property laws, wouldn't your disposable income go up? Wouldn't your Plan payments go up? So what difference does it make whether it's MJ making 60 million or your husband making 60k? If your plan payments are paying 0% to unsecured class, then that can't get any lower, so maybe that's your situation. I'd hate to second guess another attorney. About including your spouses information. I don't know enough to give you a straight answer. You really need to either provide that info per your attorney or find another attorney. Finally, your attorney would have to do a motion to modify the Plan for your payments to change.
Answered on May 16th, 2013 at 4:28 AM
Sanford M. Martin
In bankruptcy court a Chapter 13 Plan can be amended to reflect a change in circumstances. If the debtor was represented by an attorney, the attorney can draft an amended plan.
Answered on May 15th, 2013 at 3:01 PM
Deborah F. Bowinski
Is your fiance the father of your baby? If yes, then he has an equal obligation to provide for the child ? In most jurisdictions you cannot take on that full financial burden without him contributing to your household expenses and expect to be able to reduce your chapter 13 plan payment.
Answered on May 15th, 2013 at 2:12 PM
Once your plan is confirmed, you only need to provide the bankruptcy trustee with a copy of your tax refunds. You are not required to voluntarily let your bankruptcy trustee know that you have married or that your household income has increased. Once your Plan is confirmed, the total minimum amount you are required to pay your creditors is set in stone, if you need to lower your Plan payment because your income goes down or your expenses go up, you will need to find a way to make up that loss down the road.
Answered on May 15th, 2013 at 2:12 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Yes it does. You must make the plan payment and if you stop the Trustee can file a motion to dismiss your case then all the creditors can file against you.
Answered on May 15th, 2013 at 2:11 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Marriage and children can change your plan payments. The income is generally household income, so your marriage expanded your income. Technically your husband's income counts against you. You can argue otherwise and might win, but it will be a long battle, especially in Idaho at the present time. A new spouse and his income will boost household income, but a new baby/dependent will increase your expenses which can lower a payment. Visit with an attorney to work out the details.
Answered on May 15th, 2013 at 2:11 PM