Confused!

[kyboy]

I met with my attorney today to go over our proposed plan and now I am thoroughly confused. His schedule J had my excess income of $2971.36. After correcting his mistakes I have it at $483.26. He had my disposable income on the means test at $1984.94. After correcting those mistakes it is at $665.99. He says the judge will expect a monthly payment of at least $1600.00. He wants me to include both of my car loans into the plan for some reason. He really impressed me during my initial consultation and now I have paid him $1000.00 and not sure what to do. Any help or suggestions would be greatly appreciated.

[kyboy]

I also forgot to mention that he told me that my 401k contributions would not be accepted. I have contributed 5% for the past 10 years.

[lrprn]

A question first - are the figures you are sharing off your Means Test or from your Schedules I & J?

What does your corrected Means Test show vs. your Schedule I minus Schedule J for your disposable income? There has been inconsistency in which figure the local court uses to calculate your monthly payment. Most case law decisions are leaning toward using Schedule I minus J rather than the Means Test figures - that's why I asked for both off your forms.

Also across the country some Ch 13 trustees don't allow voluntary 401K contributions during your plan because they interpret that as an "voluntary expense" that takes disposable income away from your creditors. Looks like this may be the case for your local 13 trustee.

[kyboy]

Thanks

A question first - are the figures you are sharing off your Means Test or from your Schedules I & J? Both

What does your corrected Means Test show vs. your Schedule I minus Schedule J for your disposable income? There has been inconsistency in which figure the local court uses to calculate your monthly payment. Most case law decisions are leaning toward using Schedule I minus J rather than the Means Test figures - that's why I asked for both off your forms. Means test shows $665.99 and I minus J shows $483.26. He stated that the I & J do not mean anything and that the judge will use the means test. ?

Also across the country some Ch 13 trustees don't allow voluntary 401K contributions during your plan because they interpret that as an "voluntary expense" that takes disposable income away from your creditors. Looks like this may be the case for your local 13 trustee.

I hope i annswered correctly. first time replying

[lrprn]

kyboy, it sounds like your lawyer is familiar with what will be accepted in your local court by the trustees and won't be accepted - that's in your favor.

I would ask your lawyer exactly what's included in the $1600/month payment your lawyer is saying is the only figure that will be accepted. Are your car payments in arrears? How about your mortgage?

You need to be 100% comfortable with what's going to be paid every month by your Ch 13 payment and what you will still be resonsible for paying. You also need to be crystal clear why things are included in your plan and what the advantage is to you to do so.

Start asking your lawyer direct questions. It's important to be very clear on everything before signing your forms and agreeing to your plan that submitted to the court.

[jgarton244]

I was allowed to continue to contribute to my 401k, to the extent that my company matched 50% of my contributions, which was 6% on my part. I had attorney state to trustee that this was my retirement plan, and I could not afford to lose the 50% natching funds.

[MajorMike]

My company matches 100% of the first 6% and we have 10% going into 401K and unless I'm told otherwise, will keep going in there.

[kmb]

I've read in several places that if you are receiving a match, that the trustee cannot make you stop contributing to your 401K. There is case law out there if you look for it.

If you can get away from including your car payments in your plan, I would highly recommend it. You pay the Trustee a percentage of your monthly payments to the plan, and he'll be getting even more if they are paying your car payments on your behalf. Our cars and mortgage were current, we were able to keep them out of our plan and pay them ourselves, which is saving us $185/month that would otherwise be going to the trustee!

[MajorMike]

We're paying our one car ( other is paid off ) in the plan because it's only 645.00 month, and the interest rate is much better. Its also much easier making one payment a month and if the trustee wants the $60/mo, let him have it.