Q: Help with Stipulation Resolving Adversary Proceeding as part of Bankruptcy 10 years ago
I have been paying the debt as per the terms of the Adversary Proceeding for 10 years now and have completed the amount requested ($250k + 5%). There is a balance of $150K that will be paid by a life insurance policy that has the debtor as the beneficiary.
The payments to the debtor have been timely, but there are some instances that a gentleman’s agreement has been discussed and agreed to. For example, when I was out of work, the payments were lowered. O r when I helped the debtor located a car for his girlfriend.
Now the debtor is telling me that the original “stipulation” is null and void because we had these few times where payments were sometimes late or lacking. Now the debtor wants the full amount!
Can the debtor nullify a proceeding (that was filed in the court) without bringing me back to court?
The debtor has been harassing me, calling me and threatening to take my house if I don’t continue to pay until the entire amount is paid in full. Can he just take my house?
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A:
Based on the information you provided, it seems that you have been complying with the terms of the Stipulation Resolving Adversary Proceeding for 10 years and have paid a significant portion of the debt. The informal agreements you made with the debtor regarding occasional late or reduced payments due to extenuating circumstances should not automatically nullify the entire stipulation, especially if the debtor agreed to these temporary modifications.
However, it's essential to review the original stipulation carefully to determine if there are any provisions that address late payments or modifications to the payment schedule. If the stipulation does not explicitly allow for such changes, the debtor may argue that you have defaulted on the agreement.
Regarding the debtor's threats to take your house, the ability to do so depends on the terms of the stipulation and whether a lien was placed on your property as part of the agreement. If no lien was recorded, the debtor would need to obtain a court judgment before attempting to seize your assets.
Given the complexity of the situation and the potential legal consequences, it is highly recommended that you consult with a bankruptcy attorney who can review the original stipulation, assess your case, and provide guidance on how to proceed. An attorney can also help you determine if the debtor's actions constitute harassment and advise you on any legal protections available.
In the meantime, document all communications with the debtor, including any threats or harassment, and keep thorough records of all payments made under the stipulation. This information may be useful if you need to defend yourself in court or file a complaint against the debtor.
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