Chapter 13 Question

Date: Mon, 06/01/2009 - 20:17
Submitted by on Mon, 06/01/2009 - 20:17
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Met with the attorney tonight. I have about $30,000 in Credit Card and another $5000 in PDL. It's the PDL that are killing me. My income is high, but just can't keep up. I didn't pass the test for Ch. 7 so we are doing 13. Since I will be able to do a 100% repayment plan over 5 years she indicated my tax returns, raises, etc wouldn't be scruntized because I am scheduled to pay back 100%...does this sound right?


Are the credit card debts of $30k and the PDLs covered under the Ch 13 bk plan?
Quote:

tax returns, raises, etc wouldn't be scruntized because I am scheduled to pay back 100%

As far as I know, even if you qualify for Ch 13 and you pay off the entire 100%, you need to provide the trustee with a copy of tax returns filed during the case as well as the tax returns for previous years. They may not scrutinize it because you are paying the entire debt, but you cannot also be sure that your returns will not be scrutinized.


Submitted by Carol79 on Mon, 06/01/2009 - 22:34

Carol79

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Are the credit card debts of $30k and the PDLs covered under the Ch 13 bk plan?

Yes - she is putting everything in it. We planned for everyone to respond; however, she indicated that in her experience about 1/2 respond and are put into the plan (particularly the PDL), the remaining get charged off because they don't respond...does that make sense?

I guess what she is saying is that if they don't respond to the notice, they are not eligible to receive the funds and the account is charged off without payment.


Submitted by on Tue, 06/02/2009 - 05:04

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You are correct. Once the creditors are notified about the BK they have like 90 days to file a claim, if they don't file, they don't get any money:)

The tax return/refund question, will really depend on your trustee. I've read the some want every penny from every source, I've read others don't want it unless its a certain amount, I've read that if your in 100% pay back they won't bother you. Some trustees ask for see tax returns and others don't. It really all depends. But it sounds like your on the right track. Good Luck


Submitted by lmale on Tue, 06/02/2009 - 05:10

lmale

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Thank you so much for responding...I am filing tomorrow.

I have one more question. Once I file, they PDL's can't touch my bank account, correct? Attorney is going to contact them tomorrow as soon as she has my filing number. I can't close my bank account but I don't want to deal with them putting payments through, etc. They can't right?!! Or will they anyway? I bank at a very small local bank and I would rather not explain the PDL thing if I don't have to.


Submitted by on Tue, 06/02/2009 - 22:24

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Chances are if the PDL's are illegal, they will attempt to debit your account. Altho you file tomorrow, it will take a while for the creditors to be notified, so if payments are scheduled for the next couple of weeks, I wouldn't be surprised if they do try to debit from your account.

IMO, I would get another account...since you can't or won't close the account and don't want to discuss the situation with the bank, then you might have to deal with the issue down the road if the PDL's do hit your account. Good luck.


Submitted by desperatelyseekingsanity on Wed, 06/03/2009 - 06:44

desperatelyseekingsanity

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