Who Determines Payment and Time Frame?

[backontrackOH]

[HHM]

This is a simple answer, but difficult to explain. The BK law and your individual circumstances determine the payment and term of your chapter 13 plan. There are two rules when it comes to chapter 13 payment and term...

1. You must devote ALL of your disposable income to the chapter 13 plan.
2. The creditors must get paid at least as much as they would if you filed for Chapter 7.

The default term for chapter 13's is 60 months. There is no magic bullet for getting a term less than 60 months...unless you can pay off all your debt in less than 60 months. (but if you could do that, you probably would not need to file chapter 13).

The payment amount is subject to some give and take between you and the trustee (and sometimes the BK court). The rule is, you must devote all your disposable income, the fact that is up for grabs is "what exactly is your disposable income."

[tofargone]

The problem that you are having is that your debt is secured. Basically if the creditor has a lein on the property you need to either maintain the payment as is and pay off the arrears in the plan, or you need to pay the value off in the plan. You may be able to cram the cars and the equipment and pay off the value instead of the amount owed ( assuming it is worth less than you owe on it, ) but it will depend on how your trustee and/or judge interperets that law on it.

You may want to look at what is really important. If you can't make the payment you may need to turn something over in the BK....

Just remember that 60 months is a long time to be scrapping by, if you cut it to tight you may get caught down the line when one of those unforseen emergencies arise that you need money for.

Good luck

[nervousnellie]

Sounds like we might have chosen the same lawyer

Also in Montgomery County here, and had a lawyer? that sounds just like yours.
Our plan was to be 36 months with a monthly pymt of 900. Trustee didn't like that and changed it to 49 months and 1538 monthly. But our payments did stop after 41 months and we are discharged at 44 months.So my guess is Trustee rules.
Good luck

[razmom]

"He has been little more than a form-filler to this point. He gives us no guidance, no compassion, no nothing! He is very patronizing with all of it."



Is it too late to find another attorney? I'd hate to work with someone like that--you need to feel like he's on your side, this is hard enough as it is!

Good luck with your payment.