QUESTION
If I die, can they force my wife to continue with the payments or take the house anyway?
Asked on Nov 05th, 2012 on Bankruptcy - Florida
More details to this question:
I have been making Chapter 13 payments for two years with three years remainder. The primary creditor is IRS for personal taxes not paid on IRA withdrawals. For the first time, I cannot make the monthly payment, October and now November is due. I am retired, on fixed income from Social Security, working part time job and have no savings or cash reserves. House mortgage payment is included in the monthly payment. I don't know any way I can get the money to make the extra payment in November. I have written the trustee office and told them I would make one and a half payments on November 15 and the other half payment on November 30 but I now have to find that money and I am not sure I can. I am very concerned and depressed over this situation, which can lose my house. It is hard on my wife as well.
8 ANSWERS
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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I sincerely hope you have a bankruptcy attorney. A Chapter 13 is a fixed payment throughout the life of the Chapter 13 case but you may be able to ask the court to excuse 2-3 months due to unexpected circumstances. Talk to your Bankruptcy Attorney about the possibility of excusing a few months of payments. The house is another story, if you do not pay the house payments, the creditor can move to lift the automatic stay, which would mean the house would no longer be under the protection of the bankruptcy laws. If your case is dismissed, you may be able to file a new case.
Answered on Nov 07th, 2012 at 9:07 PM
Daniel James Wilson
Your question concerns me. You are obviously under a lot of stress. If you are not able to make your Ch 13 plan payments you might want to modify the plan or even dismiss it.
Answered on Nov 07th, 2012 at 11:54 AM
If your inability to make the plan payment appears to be permanent, you may look into converting your case to a Chapter 7. That will eliminate your personal responsibilty for paying your unsecured debts. You can always work out a payment plan with the IRS for your priority tax debt. You didn't mention whether or not you were behind on your mortgage when you filed your Chapter 13. If you were, you will still need to find a way to resolve the repayment of the past due mortgage, and a loan modification might be a good way to do this.
Answered on Nov 07th, 2012 at 11:53 AM
Call the Trustee back and tell him what you just told me. He may let you put that payment at the end of your plan. Remember your wife needs you.
Answered on Nov 07th, 2012 at 11:53 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You really need to work with a competent bankruptcy attorney. If you cannot afford one you might check with the County or State Bar Associations, or the Bankruptcy Court to determine if there is a volunteer lawyer's program. If you live in Arizona there is just such a program at the Arizona Bankruptcy Court. I need a lot more information to advise you about your current situation. Do your best to try to work with the trustee to cure the plan payments. Meanwhile try to find an attorney.
Answered on Nov 07th, 2012 at 11:52 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Depends on what you mean by force. They cannot force you to make the payments as you have the legal right to simply dismiss your case and deal with your creditors as you wish to.
Answered on Nov 07th, 2012 at 11:51 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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If you alone are on the mortgage and note, then the bank can foreclose once the payments are not being made. If your wife is on the mortgage and note, then she will be held liable for the debt, too. Also, the case will probably be dismissed upon your death if not already discharged and closed.
Answered on Nov 07th, 2012 at 11:51 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You need an attorney. There can be a conversion to chapter 7 but it must be done correctly, if you have had a decrease in income.
Answered on Nov 07th, 2012 at 11:50 AM