Trustee Objection

[Michmom321]

I got my pacer information today, and I am having a heart attack. It says that the Trustee does not recommend confirmation of our plan. There is nothing in the comments section, on the bottom it says the "Trustee prays the Honorable Court deny confirmation of the Debtors Plan, dismiss this case, allow an administrative expense of $100 to the Trustee and provide other relieve as is just". What does that mean? We can barely make it on the plan that the lawyer submitted, and we are trying to keep our house (in the plan), and pay our car payment out of the plan. I did take some cash advances out before, but I was using all of that money to rob peter to pay paul - I just refinanced other debt. What happens to us and our kids if this is dismissed? We flew through the 341, and the trustee seemed nice and spoke of giving people a workable plan. I am in Eastern Michigan. I have a call in to my lawyer but he is so cavalier about it all and now I have to stew about this all weekend. thanks for any help.

[HHM]

To find out the grounds for the dismissal, you need to actually open the associated document.

Usually, there is not much to worry about, the trustees nearly ALWAYS find something to object too, and then that objection is worked out and the plan is confirmed. You have between now and the confirmation hearing to sort out whatever the objection is.

[Michmom321]

Thanks, you are already helping my blood pressure go down. How do I get to the associated document? I opened the Objection to Confirmation, but it only says what I posted. It would help me greatly to see what the objection is. I did not see any objections from our creditors, and (of course) all of our creditors filed a claim (as seen on that data 13 site).

[Michmom321]

Can anyone tell me how to get to the actual objection? I have opened the original document a couple of times, but only get that first page. Two are mentioned and charged, but the second page is blank. Will I get a letter from the Trustee telling me what the objection is?

[rrockinggramma]

who is your trustee? I am in eastern district of michigan. Usually your attorney and the trustee can work out any hinderance to confirmation. When you went to the 341, did you have a status conference afterward? My experience has been that all they care about is funding. Is there enough to fund the arrearage to your home in the plan? How much to unsecured? I would be in close contact with your attorney and if they won't answer, camp out in their office or call the trustee's office to get the information you need. You should have a status conference to work out details for the reason for non confirmation.

[Michmom321]

My trustee is Carl B., and my lawyer just says that our income is too high so we will not be looked at favorably. We are at 33% payback, and we put the house in the plan. There were no arrearages on the house, we included it so that if we need to surrender it, we can. At the 341 she just said it all looks good and had no real questions. Right now we would like to stay in the house, but we have two teenage kids, and we both work far away (in different directions so our house is in the middle) and gasoline is killing us. Can I call the trustee directly to see what the objection is? My attorney seemed to know everyone at the 341, and he has a lot of experience with this trustee, but his last words to us were that we might have to get second and third jobs just to make the payment. We are paying 1830 biweekly to the plan, and my check is negative money so I have to send in a payment to the trustee via money order when I am supposed to get a check. After the plan comes out of my husbands check, there is barely enogh money to cover the carpayment, gasoline and utilities. Does this make sense to you??? I get the feeling that if the trustee says we have to increase our payment the atty will just say OK. I also feel like this is punative and I thought the whole idea was to give us a chance to get on our feet. It is a no win for everyone if the plan is not doable.

[chloe0724]

When you were putting together the repayment plan with your attorney, did he list all your expenses? How are you so far in the hole? Is it that you truly can't afford the mortgage payment?

[car67]

$1830 every 2 weeks? Is that right? Wow

[HHM]

1. You really should have pushed to "pay" the mortgage outside the plan.

2. Without more info, all we can do is speculate as to the trustees reasons for the objection. Most of the time, the objection is not an "income" issue, it is an "expense" issue...typically the trustee will object to some of the expenses you claimed, or might object to how you calculated your disposable income. Also, it could be a liquidation value, if your attorney is saying you might have to get 2nd jobs, that could mean that, based on the non-exempt assets you have, you need to pay a certain amount to unsecured creditors.

Bottom line, if you cannot afford a chapter 13, that means you have something you cannot really afford. It is not the chapter 13's fault, or the trustee's, that your payment is what it is....my guess is, the house is simply too much house for your income (I only say that, because that is what it usually is for most people, you really haven't shared much about your background yet).

[rrockinggramma]

wow that is a chapter 13 doomed to failure I think, 3600 a month!! Your income must really be up there to handle that payment. The push in the eastern district right now is that so many chapter 13's are failing. Perhpas your trustee sees this as a payment plan that can't be supported. You need to go over all of your exenses carefully with your attorney and make sure everything is covered. And then find out why the trustee is objecting. I am not familiar with this trustee. Mine is David R. and he has been ok, pretty flexible actually. Keep me posted

[Michmom321]

The atty says if we ditch the house, then we will have to pay even more into the plan, so we might as well keep the house. AT this point we are ready to give up the house if that is the problem. I guess we will know more when we see what the objection is. I cannot find it on pacer, only the document stating that he does not support the plan.

[Michmom321]

What if I find a cheaper rental, and we walk away. Does the house come off of the payment? Can we just drop the 13, let the house go, find a rental and pay the credit cards? Most of the debt is the house (upside down) and second mortgage. Do we get hit with the difference, we are upside down more than 100,000 on the house. I can make the CC payments if the house is off of the bill list.

[lrprn]

What if I find a cheaper rental, and we walk away. Does the house come off of the payment? Can we just drop the 13, let the house go, find a rental and pay the credit cards?

Yes, you can find a rental, surrender the house, voluntarily dismiss your Ch 13, and deal with all the other secured and unsecured debt on your own.

However, do at least find out what the trustee's objection to your plan is based on and what your lawyer's approach to deal with it will be before making a decision.

[keepmine]

Why would you try and save a home where you are upside down by $100K?

[Michmom321]

keepmine, we are trying to save the house to keep some stability for the kids, and the lawyer is trying to strip the lein since the appraised value of the house is less than the first mort. My husband says don't panic until we see what the objection is. If we do find a cheaper rental, drop the 13, and deal with the credit card debt, are we on the hook for the difference between the sale price and the amount that we owe? Thanks.