Bankrupcy Questions
I filed chapter 7 two years ago and our personal residence was exempt. Still behind now and filed a new chapter 13 case to keep residence and 1 duplex that chapter 7 trustee abandoned back to me. I also included all the debt from the chapter 7 case in the new 13 case. Since filing the 7 trustee has filed to abandon more properties. I have no equity but want to keep them and fix up and rent out. Can I amend the 13 plan to include the new assets and make arrears payments in that new plan. This doulble plan thing is new to my attorney as far as the abandoned properties. Just thought someone else here would have insight or experience. Thanks for any help
Ted Jr
Was your 7 discharged?
The Chapter is case has not been discharged. I sold 30 plus houses on contract for deed and the trustee has only sold the ones that have become vacant or were vacant when he took control.
Thanks, Ted Jr
Hummm....
Is your current chapter 13 plan confirmed?
Do You now have post-petition arrears on your duplex?
Has the creditor filed a RFS motion? (Relief from stay)
Did you lists these properties on Schedule A? How are they 'new assets?'
In the District of Utah (10th circuit) The Chapter 13 Trustees will not allow you to keep "other" properties i.e. a rental property such as a duplex, unless they are actually Income generating properties, and if you are contributing the income as part of your plan payment.
If the other homes cost more to run than you are making, the Trustee usually will require that you surrender the property to the mortgage holders as a condition of confirmation.
oh, to answer the other question, adding post-petition arrears is not possible. You need to do a "work-out" with the creditor directly, and you may need trustee involvement.
good luck. Hope this info is helpful.
MLM
[ Edited by Utah_Bkatty on Date 09/09/2003 ]
Thanks for you help. I just went to the 341 meeting and asked the same question of the trustee. At first he said just amend the plan then he did not know if tthat would impose an automatic stay on the lender. The debt is already included in both plans for all properties. Trustee did warn that if the property is vacant that i would not be able to include that property in the plan. I need to do some fast fix up. I have also contacted the mortgage company and offered a settlement figure. I can get a hard money loan in my corp name and pay off the mortgage. At first this was a back up plan but now I believe it is my plan of attack to try to get out of BK asap and at least lower the payments to trustee over 59 months. Thanks again. Any other insight appreciated
Ted Jr