Big Mistake

We filed a ch 13 in Oct. 07. We had a loan payment that is a direct payment from my paycheck. It had been for about 6 months prior to filing, I never paid much attention to this, as it's not a bill I physically pay each month. We did not include them when we filed. Once I noticed it, we already had our confirmation. I thought since there seemed to be a little wiggle room in our budget, that I would just keep on paying and not worry about getting them added. I am having a bad feeling about this now, like I should have added them. I'm worried to say anything now though, because I did continue to pay them since I filed in Oct and didnt call my attorney. Do you think this would be grounds for automatic dismissal if I notifed my attorney and the trustee now? IT is making it really hard to make these payments and the trustee payments. IT's $175.00/biweekly. Anyone else have something like this happen? I know I was in the wrong, so please don't beat me up too much. j

Did you file pro se? I find it hard to believe that an attorney would overlook that loan payment when he or she reviewed your pay advice. And how about the trustee? Someone didn't do their job if they let this happen.

Maybe you agreed to having your employer simply send a portion of your net pay to another account - in that case it would not show on your pay advice. In that case, you set yourself up for trouble by neglecting to mention it. Your Chapter 13 payment was determined, in part, by your net income vs. your living expenses.

One thing you do know right now - that unmentioned debt is not dischargeable and the automatic stay is not valid for it.

Good luck.

Yeah, it does seem odd. If this payment is debited directly from your pay, it would appear on you pay advice...someone, somewhere should have noticed.

ultimately, the BK is YOUR responsibility. You need to address the very practical question of whether you can still afford the plan. If the answer (being realistic) is no, I am afraid you are going to have go back in and change things up.

I did file with an attorney. She never questioned it. It did show it as going into a savings account. The financial institute transfers from the savings account to the loan.

I'm very worried about getting in trouble for this.......it's very hard to afford the plan still making this, I haven't been able to put money towards the property taxes like I should be. Will a lot of questions be asked if I call my attorney and ask them to add the creditor, if I just say I forgot them? I know there is a charge to add a creditor, which I'd pay. Is there a time frame on adding creditors?

Wondering what others would do in my shoes?

We found out that we owed the IRS after we were confirmed. It cost us $50 to have attorney add creditor. They didn't change the % payment, they just added on to the time of the plan. We were 37 months at 557, but now we are at 40 months. I suppose they could do this because we were only 37 months and it didn't effect any one else in the plan. I should also mention that I am old law.

First, who or what is this creditor and what was the loan for?

Is the deposit into the savings account with the same bank that check is normally deposited in?

One creditor, with two loans, $8000.00 unsecured and $1400 secured by a 12 year old pop up camper (which isn't in our possession any longer, but we could get it back). Payment is $130.00/bi-weekly for the unsecured, and $45/bi-weekly for the camper. $175.00 bi-weekly is what comes out of my check into this account.

The deposit for this went into a separate account, different financial institute. The balance goes direct deposit into my main financial institution checking account.

I sent an email to my attorney, I should hear back in about a week. Hopefully then don't get too mad at me....hopefully I dont' get dismissed!

Well, that is a pretty major faux paux on your end to leave out a creditor to whome you owe $8,000.

It won't result in your case being dismissed. But, given the amounts involved, I think you need to re-open the case and amend the plan.

You are having $175 deducted from your paycheck biweekly for a loan and you forgot to list that as a debt on your schedule? And you took this loan out 6 months before filing (mentioned in your first post) and just forgot to list it? Sounds more like preplanning to me and something occurred to rock your boat. We all make mistakes, big and little ones. I'm not state that to "beat you up" but, come on, it is too obvious to be a mistake. When you stated you first noticed this after your confirmation and then you said you "should have added them." I'm a bit confused as with that statement, you were aware of this at a time when it should have been reported or really aware of it the entire time. The only way out of this is to contact your attorney and see what can be done and this is an excellent example to readers as to what can occur when all debts are not properly disclosed to the attorney and trustee. Hopefully you will get yourself back on track but now your entire 13 will have to be revised and everything will just take longer.

You are having $175 deducted from your paycheck biweekly for a loan and you forgot to list that as a debt on your schedule? And you took this loan out 6 months before filing (mentioned in your first post) and just forgot to list it? Sounds more like preplanning to me and something occurred to rock your boat. We all make mistakes, big and little ones. I'm not state that to "beat you up" but, come on, it is too obvious to be a mistake. When you stated you first noticed this after your confirmation and then you said you "should have added them." I'm a bit confused as with that statement, you were aware of this at a time when it should have been reported or really aware of it the entire time. The only way out of this is to contact your attorney and see what can be done and this is an excellent example to readers as to what can occur when all debts are not properly disclosed to the attorney and trustee. Hopefully you will get yourself back on track but now your entire 13 will have to be revised and everything will just take longer.

I was thinking the same thing, but didn't want to seem mean towards the OP.

Don't worry about sounding mean, I'd feel the same way if I didn't know all the circumstances. I noticed the paycheck after filing, but I thought once things were filed that I could not do anything about it. After doing some reading, I've learned that you can add creditors if you forget one.........I didn't know that, now I do, my bad. I am trying to make things right now, better late than never. I'm waiting for a response from my attorney, maybe she'll say we can't add them, maybe she'll say we can....we will see. I know I'm probably not the first person in the world to have something like this happen, we are all human. If we were all perfect, none of us would be in a bkptcy. It's not like I was benefiting from not adding them, who would benefit from keeping unsecured debt, NO ONE if you ask me. I simply didn't add them, noticed after filing, and HONESTLY thought that I could not change things. If it makes me a bad person in everyone's eyes, so be it!

Thought I would clarify things, in my first point I said confirmation, I meant filing and after the notice for the 341 was sent. In our district you get confirmed at your 341.

Thought I would clarify things, in my first point I said confirmation, I meant filing and after the notice for the 341 was sent. In our district you get confirmed at your 341.
wow, so ours isn't the only one this happens with...WOW!

UPDATE - I did file a motion to modify my plan and add the creditors. I had to update all my schedules. If affected a lot of different schedules because it was a secured debt. It was able to be exempt though, so I get to keep it, I just have to pay the value (more than what the loan was for for the secured portion), I'm ok with that though. The trustee filed a motion for "no objection to modified plan and adding new creditor". I know I messed this one up in the beginning, but just incase there is anyone else out there to scared to ask the question that might have also been in this situation, just wanted to let you know what my outcome was.

I CAN'T SAY STRONGLY ENOUGH, HOW IMPORTANT IT IS TO ACT ON ANYTHING YOU FIND OUT YOU MIGHT HAVE MISSED, IMMEDIATELY......THIS COULD HAVE BEEN UGLY.