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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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my wife and i are in the 21st payment of a 5 year chapter 13

Resolved Question:

my wife and i are in the 21st payment of a 5 year chapter 13 bankruptcy and are seeking divorce.i want to get out of the upside down mortgage we're in as well as get out of the car loan. what are the consequences with the bankruptcy?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

cfortunato :

Hi JACustomer,

cfortunato :

If you get a divorce while your Chapter 13 is in progress, you and your wife can continue to make the plan payments as they are, or you and she can request a modification in the payment - so that each makes and is responsible for separate payments.

cfortunato :

If you do not want to keep your house or your car, you can stop paying the mortgage, and you can stop paying the car loan.

cfortunato :

As long as the Chapter 13 plan - modified or not - is completed, your liability for both the mortgage and the car loan can be discharged.

cfortunato :

I think this is what you wanted to know. If not, please let me know.
Thank you.

Customer:

what about the house and car does that change the current BR 13 payment? so the plan payment will not change when i stop paying the mortgage and car payments.

Customer:

i guess what i'm asking is when i stop paying and the house and car go back to the bank does our chapter 13 go back to court tto be modified?

cfortunato :

The Chapter 13 plan allows for housing expenses and for transportation expenses.

cfortunato :

You are allowed a housing expense whether or not you are paying a mortgage or rent.

cfortunato :

You are also allowed a transportation expense whether or not you are paying a car loan.

cfortunato :

This means that your monthly Chapter 13 plan payment might and might not have to be modified if you stop paying the mortgage and the car loan.

cfortunato :

If there is a change, it should be a modest change.

Customer:

i know that can you read my question again please>

cfortunato :

You asked if your case has to go back to court to be modified.

Expert:  cfortunato replied 5 years ago.
The answer is it might and might not have to be modified, depending on how much of a difference there is between the allowed housing allowance and your mortgage payment, and the difference between the allowed transportation expense and the car loan payment.
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