Interesting 341

[sunnydazeahead]

We thought ours was going to be a no asset case hands down. We had surrendered both our expensive vehicles and it turns out that one of them sold at auction for $4,000 than we owed. Our attorney and the trustee were both shocked and had never seen that happen. Then, I didn't record the liens on the two cars we bought (old cars, one a 1992 nissan and the other a 1998 toyota) properly (we borrowed the money from my parents). We didn't record the chattel mortgage when we registered the vehicles and, even though they could both be considered exemptions (Colorado allows $5K per person for vehicles) the trustee told my attorney that he couldn't file an amendment to the exemptions for that so the trustee wants $3200. Oy vey!
The trustee never asked about our house or whether we were expecting an increase in income or anything like that. He didn't seem to ask any of the questions that are considered "standard" so I was really caught off guard. It still lasted a nerve wracking 20 minutes which felt like an eternity.
It feels good to be a part of the 60 day club and it's upsetting having to pay the trustee $300 a month for 12 months but hopefully that's the only snafu we'll run into.
I guess it's true, one really should be prepared for anything!
I'm feeling some relief but not the enormous waves I expected!
Oh well....

[freshstart06]

Will you be able to close while paying the $300 a month or will you just discharge but no close until you complete the payment plan in 12 months. Also, can you pay them off early???

[sunnydazeahead]

I'm not sure. I'll have to check on whether it will delay our close. The attorney said it definitely won't delay our discharge, though, which is a good thing. I'm also not sure if we can pay it off early but financially we can't right now anyway.
I'm starting to feel a little bit more relief

[freshstart06]

I would not worry too much, it seems like the trustee only asks questions that they have concerns for. If they did not have any question regarding your home or income then there is no problems. just make your payments on time and you will be fine. I heard that this type of payment plan is usually for high income but not enough income to put into chpt 13 and there is no abuse. for example if they can calculate over the more income that makes you fail the means test but you can not be considered abuse because your expenses make sense and you do not have enough income to maintain a chpt 13 they can put into a year payment plan that is not chpt 13 but you are making up the difference of high income. I know I am explaining this wrong but a lot of people in Arizona are getting this deal.

[NoName]

Your case can not close until the balance is paid. It can be discharged but not closed. Closing is just an administrative formality anyway.

[SinkingFast]

for example if they can calculate over the more income that makes you fail the means test but you can not be considered abuse because your expenses make sense and you do not have enough income to maintain a chpt 13 they can put into a year payment plan that is not chpt 13 but you are making up the difference of high income. I know I am explaining this wrong but a lot of people in Arizona are getting this deal.

It has nothing to do with income or the Median or Abuse.

The Trustee found some Legal Loopholes to do with the Titling of the vehicles and wouldn't allow the attny to Amend the petition to Exempt the property.

Rather than seize the property, possibly not sell the cars for anywhere near full value, and have to pay costs, the Trustee decided to settle with Sunny for the full amount. Easier that way for the Trustee.