Still Confused

[tadbitconfused]

Ok met with another attorney Friday.. He figured our monthly to be about 600.00 per month. Since I have been reading on here I noticed that some people say that the trustee controls ALL the money, With this payment plan I have breathing room, but can the payments change what if I get a raise, how does this work. Very Very confused,,,

[lrprn]

...can the payments change what if I get a raise, how does this work. Very Very confused

Ch 13 bankruptcy *IS* confusing! Don't worry about that - it takes a tremendous amount of time and research to begin to understand the ins and outs of Ch 13 - it's very complex!

Your bankruptcy estate is set on the day you file. Your suggested monthly trustee payment is listed on your forms. Once your case is confirmed, this is the amount you will pay for the months designated in your plan *unless* something changes that impacts the amount of disposable income you have significantly up or down in a way that will continue for some time. Then there may be a readjustment of the payment amount. If the income decrease is significant and long lasting, a conversion to Ch 7 is a possibility as well.

It's true that your trustee controls your financial estate as of the day of filing - however, it's not unusual for debtors to continue to make some secured loan payments themselves directly to their creditors during Ch 13 - for ex, we pay both of our mortgages and student loans ourselves directly to our lenders "outside" the plan, but our car payments are paid by our trustee "inside" the plan. Who pays what can vary depending on the circumstances of your particular case. There's no consistent way to set Ch 13 up which adds to the confusion!

Trustees in different bankruptcy districts across the country vary about what they want to be notified about regarding income changes as well. Some trustees want to know about any increase in income, some want to know only if there's a consistent 10% increase, and some don't request to be notified at all. You won't know until your trustee is assigned and you have your 341 which road your trustee will take. (Ours wants to know about any increase in income.)

Hope this helps explain things a little better. Keep asking questions - that's why we're here!

[SinkingFast]

Also keep in mind, what your attny has written up is a "Proposed Plan". Now it's up to the Trustee to agree.

Could be, the Trustee will think your proposed plan is fine and you'll be Confirmed this way. Could be, the Trustee will find areas to trim to add more to your payments. If that's the case, this could be a tactic by your attny so that once the dust settles, you'll have a Plan Payment you can live with.

[aa06a47]

tadbitconfused, here is pretty much how it works. You propose a plan to the trustee/court when you file bankruptcy...the trustee reviews it....does his/her own figuring, and either accepts it or ask for more money. I've never heard of them asking for less money. You really won't know the exact payment until you get confirmed. At that point, the payment won't change unless there is a significant increase in income or decrease in income. At the 341 meeting, the trustee should go over those requirements.

My lawyer told me to fly under the radar and nothing will change. Not sure what fly under the radar means, but I suspect it meant keep my mouth shut. Since I work in the auto industry, wages have not been going up, so I have no problem there.