[spacexq]

My husband just died a few weeks ago (5/29/07 due to a short (2 months) of cancer. He was dagnosed in 4/07. We filed Chapter 13 last year (07-06) and his weekly checks were garnished to pay on the settletment. I don't have a pay check coming in due to using all my accurals and I am not in the right state of mind to go back to my job right now. Am I legally responsible to continue to pay for debts that are in his name? What are the laws regarding this type of situation. Can the court appointed trustee garnish my wages can I change the Chapter 13 payment arrangements since my income has dropped permanently? Can the court intercept insurance an policy?

[moomin007]

Hello spacexq,
I have no idea about the legal side of things.
I just wanted to pass on my heartfelt sorrow at your loss.
I pray God will surround you with His love & send you peace.
God bless
Moomin

[RichardBondMan]

First I am sorry to hear of your loss and hope things are brighter for you soon. I am not an atty but why not ask the atty who filed the bankruptcy for you? I do have a couple of questions if you don't mind. Chap 13 Bankruptcy is designed to wipe out most, if not all debts of yours and his and give you a fresh start. Therefore, am I assuming correctly that some of his debts were not included in the bankruptcy plan ? If they were included in the plan, then how could a creditor garnish his wages ? As to the life insurance death proceeds, it's my understanding that life ins death benefits paid to you, the named beneficiary, are protected from the claims of creditors. I believe you need to ask an attorney since Bankruputy laws are very complex.

[Fr_Chuck]

Yes, the Chapter 13 can be admended anytime there is a change in the income. But they will have to be notifed as soon as possible.
But depending on the state you live in, matters as to the debt situation, in some states husbands and wife's share debts in common by virture of being married.

The attorney that did your chapter 13 filing for you, needs to look at this,
And no the chapter 13 do not garnish any pay, if you fail to pay and if you don't notify the court, they will just let the chapter 13 go into defaut and your plan will be droped ( disqualified) so that the debtors will be able to come back after you.

But your bankruptcy attorney will be able to tell you if you need to change this over to a chapter 7 perhaps or if you need to re-file under your name only.