LOS ANGELES BANKRUPTCY BLOG
Chapter 13 Success Story
Oct 12, 2010
Weintraub & Selth, APC recently helped an individual confirm a Chapter 13 Plan which enabled him to stop frivolous litigation filed against him and repay his unsecured creditors 14% of the total debt over five years.
Mr. G was being sued by his ex-wife on frivolous allegations. He had spent tens of thousands of dollars on legal fees and was facing even more legal fees for the trial. Although he was sure he would eventually win the case at trial, the ongoing legal fees to fight the lawsuit were causing him to fall behind on all his obligations, and the litigation was causing him great stress.
After consulting with Weintraub & Selth, the decision was made to file a Chapter 13 bankruptcy for Mr. G to stop the lawsuit, discharge the claim of Mr. G's ex-wife and repay his legitimate creditors as much as Mr. G could afford to pay over five years.
Mr. G's Chapter 13 Plan was confirmed providing for monthly Plan payments of $507 for 60 months, which will pay his creditors 14% of their allowed claims. This monthly payment is much less than the total minimum monthly payments on Mr G's credit cards before his Chapter 13 case was filed, and at the end of the five-year Plan Mr. G will receive a discharge of all his debts, including unpaid attorneys' fees from the Superior Court lawsuit.
Finally, the ex-wife's attorney filed a proof of claim for her in Mr G's Chapter 13 case for $1 million. Weintraub & Selth objected to the claim, and the bankruptcy judge sustained the objection and disallowed the claim.
