Legal Question in Bankruptcy in Indiana

petition to dismiss

we have been in chap.13 since 5/00 @$3000/month. during this time we have requested from our atty to make lesser pmts due to illness, car repairs, medical bills, etc. he approved. we are obligated to repay 100,000 by May 2003. we have paid 39,000. received a petition to dismiss 12/12/01 stating we are $16,500 in arrears. we want to complete our chap 13. the only way we can make up the arrears is for husband to retire from his $30,000/year teaching job and use his $16,000 retirement funds to pay arrears. we do not want this but see no other option; please help!!!!!!


Asked on 12/15/01, 2:31 pm

2 Answers from Attorneys

Dorene Philpot Philpot Law Office

Re: petition to dismiss

Why not convert to a Chapter 7? Or is something, such as assets or a previous recent filing, stopping you from doing that?

Read more
Answered on 12/16/01, 11:03 am
John Cook Dunn & Cook

Re: petition to dismiss

From your facts it is not possible for me to tell the reason for your $16,500 arrearage. Is it from arrearages from before the payment modification, or because your attorney did not get your payments modified, or is it because you got behind after the modification was approved. If you want to continue in the chapter 13 plan, I would suggest submitting an amended plan where you will pay the lesser amount, but continue to do so for a longer period. Although a debtor can not be required to make payments for longer than 36 months in a chapter 13 bankruptcy, a lesser payment period must still be sufficient to pay off all of the secured debts, tax priority debts, trustee's fee, and any other required debt. With the amount of debt you are paying off, I see no reason why the Trustee or any other creditor would object to you amending the plan that would include a lesser monthly payment, but enxtend it for another 15 to 20 months. The attorney that handled your original Chpt 13 should be able to handle the necessary motions to get this done.

Read more
Answered on 12/17/01, 6:38 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Indiana