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CH13... unique situation

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Anonymous
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CH13... unique situation

Hey there, was looking for a little advice. First, I filed CH7 back in 2009. Due to a divorce I am in a situation where I may need to file again. Only this time it would have to be CH13 since it has not been eight years since the CH7. I defaulted on all my debt about 2 yrs ago after the divorce.. this included CCs, auto loans, LOC, student loans, etc. I also have a current installment plan with the IRS. I am finally getting sued and I suspect with the judgements, garnishments are soon to follow.

I make good money at $117k and currently rent my house. Here is where things get interesting. My little brother lives with me and has perfect credit but makes a fraction what I do. I basically put a roof over his head and help support him. As a return, he has allowed me to use his credit to get things over the years. These are not joint and solely in his name and include a car payment, personal loan, authorized user CC and a ATV loan. All these items are current. I know, dumb of me looking back and I am ashamed I have involved him. He did know my situation though so it wasn't like I duped him or anything like that.

I am wondering how these would play out in a CH13. Would I still be able to count these as my monthly expenses since I pay for them even though they are not in my name? I of course want to protect his credit at all costs and not be forced to sell what's in his name since he also uses them. But I am worried that could be unavoidable if I try and file and he couldn't afford them on his own. I wouldn’t be able to cover all this regardless of whose name they were in if I start to get garnished. Thanks!

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2 REPLIES 2
krielly
Established Contributor

Re: CH13... unique situation

Ouch! My best advice would be to get a consult with an attorney or two ASAP. Be 100% up front about every aspect of your situation.

 

You will not be allowed to use this debt as expenses.......this would be viewed as debt to your brother, and you will not be permitted to pay him (preferential payment), and not your other creditors in a BK.

 

The Chapter 13 trustee is going to seek a plan payment that reflects all of your disposable income after expenses, which unfortunately will leave you little or nothing to pay your brother for your debt in his name.......


This is a really tough spot that you're in........I wish you luck!

 

K


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 2 of 3
Anonymous
Not applicable

Re: CH13... unique situation

Thanks.. that is what I am afraid of.. ugh..meeting with a few lawyers next week to get their thoughts. 

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