Something my Atty said...

[jamist649]

We filed 15 months ago on a 60 month plan. Thus far, no issues. During our initial consultation, our attorney said we would most likely be on a 36 month plan. We paid the retainer, gathered up our creditors, and went back to file a few days later. When we got there, our payment had gone up about $50 per month (no big deal) and our term had gone from 36 to 60mos. He told us not to worry, (we're paying 0% to unsecured and house/car outside of the plan) that it may "kick-off" after 36 months. When we asked him what he meant, he said that after 3 years to come back by the office and they would "re-evaluate" and that the plan may end at that time. This has always sounded "wrong" to me, but anyway. Is anyone familiar with this?

[HHM]

If unsecured creditors are getting 0% and house and cars are outside of the plan, what are you paying inside the plan? (I would assume taxes)?

Are you above or below your state's median income?

[lrprn]

He told us not to worry, (we're paying 0% to unsecured and house/car outside of the plan) that it may "kick-off" after 36 months. When we asked him what he meant, he said that after 3 years to come back by the office and they would "re-evaluate" and that the plan may end at that time. This has always sounded "wrong" to me, but anyway. Is anyone familiar with this?

Sounds like what your lawyer is recommending is after you pay for 36 months and your secured mortage/car arrears (if any) and your special debt (if any) is paid in full, he will file an amended plan to end your plan since you have 0% going to unsecureds. Your lawyer should know what's going to fly in your local court.

If I were you, I'd ask how many cases like this he's personally done and how many done by other lawyers in your area have been successfully amended to cut short a 60 month plan in your local court. If he says "don't know" or "not sure", then the worst case is that you'll pay your payment for 60 months rather than 36 and your unsecureds that filed claims may get some money back because your trustee is going to make the case that your monthly payment is now disposable income. Only you can decide if that's a deal breaker or not. And that depends on what you are trying to protect by filing a 13.

Did you have to file Ch 13 because of above median income for your family size in your state, because of taxes, or due to arrears on secured assets you want to keep? (Or some combination?)

[jamist649]

We had 0 arrears on house/cars. We were actually current on most of our bills, just robbing peter to pay paul, zero cash at the end of the month,and huge medical bills. We are above our state's median income which is what the atty's Paralegal said threw us into 60 mos. From what I can gather, what we are mostly paying is the atty and the trustee. EVERY DIME paid thus far has gone to them according to documents on Pacer. The only priority debt is a debt for appliances that we bought 4 months prior to filing (nothing fancy, we just had 3 appliances die within 2 months!). They are being paid back at 100% which is about 2,500 bucks

[lrprn]

We had 0 arrears on house/cars. We were actually current on most of our bills, just robbing peter to pay paul, zero cash at the end of the month,and huge medical bills.

So you filed Ch 13 primarily to get rid of your unsecured medical debt, correct? Did any of your medical creditors file claims after you filed? How about your other unsecured creditors?

[jamist649]

A few of the unsecured did file. The biggest one is a deficiency balance on a car that was surrendered in the BK. About 8,000 unsecured. The appliance note-holder sold thier debt to Ecast and they filed claim. None of the medical bills filed, oddly enough. Medical bills were over 15,000! The wife and I owed Discover about 16,000 together and they filed. Plus a few other credit cards, about $4,000 collectively filed.