Decrease in months to payoff.

[optimistic1]

I wanted to know, lets say that somehow my lawyer devises a plan that lasts 40-48 months, as we would be below State Median Income, but only enough DMI to pay the secured claims only, trustee, and lawyer fees, it would be longer than the typical 36 month.

But as the years go by, what if I no longer pay $500 a month for daycare, but instead pay $250, because daycare costs for me are less when its not a newborn.

And as the years pass by, I get increases in pay.

With these changes, granted, I keep the same expenses as originally proposed, can a motion to modify the plan from the remaining months, to a lesser amount of months be approved by the trustee?

Or will he just want to gobble up those increases in DMI to start paying any unsecured claims.

The way I see things, this is exactly what would happen to me.

So on the same token if that is the case, could I then still file a motion to modify, and upon increase in disposable income.

Give some of it to the plan, but yet, increase my expenses at the same time, to make it easier on my budget?

These would be legitimate increases, I can see myself 3 years from now, needing to pay more for energy, gas, food, and clothing for my first born.

Im guessing the answer would be yes to both. Yes the trustee could gobble up extra DMI, but I could easily claim increases in expenses. And I am guessing that the original monthly plan determination, would just simply stay.

Let me know what all of you think. Thanks

-dave

[NEWBIE911]

I wanted to know, lets say that somehow my lawyer devises a plan that lasts 40-48 months, as we would be below State Median Income, but only enough DMI to pay the secured claims only, trustee, and lawyer fees, it would be longer than the typical 36 month.

But as the years go by, what if I no longer pay $500 a month for daycare, but instead pay $250, because daycare costs for me are less when its not a newborn.

And as the years pass by, I get increases in pay.

With these changes, granted, I keep the same expenses as originally proposed, can a motion to modify the plan from the remaining months, to a lesser amount of months be approved by the trustee?

Or will he just want to gobble up those increases in DMI to start paying any unsecured claims.

The way I see things, this is exactly what would happen to me.

So on the same token if that is the case, could I then still file a motion to modify, and upon increase in disposable income.

Give some of it to the plan, but yet, increase my expenses at the same time, to make it easier on my budget?

These would be legitimate increases, I can see myself 3 years from now, needing to pay more for energy, gas, food, and clothing for my first born.

Im guessing the answer would be yes to both. Yes the trustee could gobble up extra DMI, but I could easily claim increases in expenses. And I am guessing that the original monthly plan determination, would just simply stay.

Let me know what all of you think. Thanks

-dave

you should put in schedules I/J anticipated hieghtened costs - to offset futures earnings if you have any of course

[optimistic1]

Thats a thought, I guess what I would be wanting would be like having my cake and eating it too.

But lets say, for some reason, I do confirm a 36 month plan, or a 36 to 60 month plan, and for some reason, I have a dramatic increase in expenses, such as, "the new gas super bubble" predicted within the next few years. And my DMI suddenly dropped so low, that now it would take much longer to pay. Then they would simply increase the length of time in the plan. Thats my argument, if they can increase the months, why couldnt I decrease the months.

I just dont want it to last 60 months, period. Thats too long. I would rather suffer 3 years on a limited budget, then be under a trustee's watchful eye on everything I do, plucking me for everything I'm worth.

This is a hard decision, good thing I can ask lawyers these same questions.

[NEWBIE911]

Thats a thought, I guess what I would be wanting would be like having my cake and eating it too.

But lets say, for some reason, I do confirm a 36 month plan, or a 36 to 60 month plan, and for some reason, I have a dramatic increase in expenses, such as, "the new gas super bubble" predicted within the next few years. And my DMI suddenly dropped so low, that now it would take much longer to pay. Then they would simply increase the length of time in the plan. Thats my argument, if they can increase the months, why couldnt I decrease the months.

I just dont want it to last 60 months, period. Thats too long. I would rather suffer 3 years on a limited budget, then be under a trustee's watchful eye on everything I do, plucking me for everything I'm worth.

This is a hard decision, good thing I can ask lawyers these same questions.

I know the feeling - I am just starting this as well. 5 long years of oversight. Not fun

[optimistic1]

Its no fun, thats for sure, but, it does allow me to actually function, instead of simply digging myself into a hole with no way out(credit cards).

So in design, it is helping me, and I should embrace it, rather than be disgusted.

[Flamingo]

Thats a thought, I guess what I would be wanting would be like having my cake and eating it too.

But lets say, for some reason, I do confirm a 36 month plan, or a 36 to 60 month plan, and for some reason, I have a dramatic increase in expenses, such as, "the new gas super bubble" predicted within the next few years. And my DMI suddenly dropped so low, that now it would take much longer to pay. Then they would simply increase the length of time in the plan. Thats my argument, if they can increase the months, why couldnt I decrease the months.

I just dont want it to last 60 months, period. Thats too long. I would rather suffer 3 years on a limited budget, then be under a trustee's watchful eye on everything I do, plucking me for everything I'm worth.

This is a hard decision, good thing I can ask lawyers these same questions.

Chapter 13 is not easy. However, it is easy compared to the way you are now, burdened with debt with no way out, and Chapter 13 allows you to keep assets. The fear many have of Chapter 13 is the lifestyle change that must occur and we all have fear of not having the credit cards around and learning to live under a budget. However, after a while in a Chapter 13, you will not want to see a credit card again and will learn how to handle money and not let your money handle you. It is also scarey to have a Trustee in charge of your finances for 36 to 60 months. But that is part of actually learning how to do the adjustments you will need when your Plan is done and you are back in the real world and learning to handle finances again.

[optimistic1]

Chapter 13 is not easy. However, it is easy compared to the way you are now, burdened with debt with no way out, and Chapter 13 allows you to keep assets. The fear many have of Chapter 13 is the lifestyle change that must occur and we all have fear of not having the credit cards around and learning to live under a budget. However, after a while in a Chapter 13, you will not want to see a credit card again and will learn how to handle money and not let your money handle you. It is also scarey to have a Trustee in charge of your finances for 36 to 60 months. But that is part of actually learning how to do the adjustments you will need when your Plan is done and you are back in the real world and learning to handle finances again.

Well said, and I agree 100%, this plan is going to help my family, especially when you compare it to a Credit Counseling Program. I called a reputable company once, all they did was lower my payment by about $100, which didn't help my situation at all.

I just cant wait to start my Ch. 13 and get on the road to a new life, without credit cards, just cash.

[Flamingo]

Well said, and I agree 100%, this plan is going to help my family, especially when you compare it to a Credit Counseling Program. I called a reputable company once, all they did was lower my payment by about $100, which didn't help my situation at all.

I just cant wait to start my Ch. 13 and get on the road to a new life, without credit cards, just cash.

There is a lot of help and support on here. You will be amazed as your Plan progresses how your outlook as to money/credit changes especially when you look at Mr. & Mrs. Jones' down the street with every gizmo imaginable in their house and yard and know just how much debt they are really in....

[optimistic1]

That is definetely what life is NOT about, I have come to realize that. Yes you can buy things, but buy it wish cash, not borrowed time and money. I'm glad we are doing this, and this forum is great, glad I found it.

[njguy1972]

optimistic1

i was told by 2 attorneys that once the plan is agreed to by the trustee, that is your plan. You do not need to file lots of paperwork each year. You just need to tell them if you get more than a 10% in pay from the prior year. Supposedly they understand there is inflation.

Does it make sense for the trustee to modify your plan because you got a 5% raise when inflation is 3%? With the economy as it is, the trustee is very busy and cannot look at every detail.

If your day care costs decrease, then you may have more disposable income.

[optimistic1]

Well that sounds reassuring then, I will just offset the daycare costs an keep them low, but move it to food and clothing. That way, when the daycare costs less, they cant take more DMI, because its somewhere else.