Had 341 Meeting, Still Have Questions, Questions

[tleeburks]

I know that you cannot provide legal advice on here but I have a few questions. Filed a 13 by the deadline 10/14, went to 341 meeting on 22 November. It was packed with alot of people. mass court. The lady up front just basically confirmed everything was correct and made sure we understand the process. On my paperwork, it says a 36 month plan but online at the national data center it says 60. What gives? Apparently we do, i know, i know. Anyway. Our plan calls for $1500 a month payed to the trustee. Thats for a mortgage, and two vehicles and trustee fees etc. When we went to 341 meeting my lawyer said that there was a few CLAIMS from creditors that we would have to talk about. I have a meeting tomorrow at 1:30. One in particular is the van, the creditor wants more for it than the old rule says. In other words, you pay what its worth, not what you owe. Also, a credit card company, through their attorney wants over 7k for unsecured debt. Awhile back I was sued, judged on and was suppose to pay them. Didn't and about 2 months ago they garnished over 1k out of my checking account. Are they entitled to receive more money? The way I understand it is unsecured means they shouldn't get anything. Another credit card company claimed also as well as IRS which I was paying directly. Now, having said all that. How will this work? When we signed our papers it was determined that this 1500.00 is what we can afford along with expenses, etc. There is nothing else. I have over 300.00 garnished from my check each week to send to trustee. I have a wopping 200.00 after that not counting my wifes pay, retirement pay from military that were all written down in the papers. How can they get more money? Also, one last questions. ONe of the creditors (van) has already received 495.00 and it hasn't been over a month. My balance at the trustee is around 550.00 which is paid weekly to them. But, my mortgage hasn't been paid by them and the other vehicle creditor hasn't received any money yet. How can the trustee's office pay that creditor sporadically like that instead of the monthly 165.00 which they are suppose to get? Sorry to be so long winded. Just had a few questions. THanks.

[StaciMM]

Unsecured creditors get a %, don't necessarily get paid in full. They have to file a claim in order to get anything though, I believe.

Do you have any non-exempt assets, and if so-how much? Such as, if your state allows $10,000 equity in your house and you have $20,000 or if you have overages in cash, cars, etc. That usually sets the minimum amount that needs to go to the unsecured creditors, as they would get that if you filed a 7 and gave up the secured properties.

[tleeburks]

No assets whatsoever. We are living payday to payday. We refinanced on our house twice before so we owe about 10,000 more than what it is worth. We owe on cars. We have no extra special savings account to get money from. I don't want to sound sarcastic but we are very tight financially and will be until this plan is complete. I clear about 200.00 each week after the garnishment for chap 13 and its hard to deal with when you work your butt off. I will be d@@ned if these bloodsucking credit card companies get anymore cash out of me. Thats why we filed in the first place. I filed a 7 b4 and all the bills went away. I understand that a 13 is different but these unsecured idiots don't deserve anything. They are already charging twice the minimum payment on credit cards now. I will never get another credit card again. Thanks for letting me rant and rave.

Terry

[StaciMM]

Your state/district may have a minimum that must go to the unsecured debts in a 13, though I can't imagine it being more than 10-20% if that is the case.

Its not unusual for the creditors on a cramdown to haggle about how much they get, though the trustee has the final say I think. And, they would probably get some interest still.

Let us know what your attorney has to say!

[losing_it]

No assets whatsoever. We are living payday to payday. We refinanced on our house twice before so we owe about 10,000 more than what it is worth. We owe on cars. We have no extra special savings account to get money from. I don't want to sound sarcastic but we are very tight financially and will be until this plan is complete. I clear about 200.00 each week after the garnishment for chap 13 and its hard to deal with when you work your butt off. I will be d@@ned if these bloodsucking credit card companies get anymore cash out of me. Thats why we filed in the first place. I filed a 7 b4 and all the bills went away. I understand that a 13 is different but these unsecured idiots don't deserve anything. They are already charging twice the minimum payment on credit cards now. I will never get another credit card again. Thanks for letting me rant and rave.

Terry

If I were you, and this isn't legal advice, I would just say the heck with the unsecured creditors. Maybe try and work something out a few years down the road after your IRS issues are fixed, and if they don't want to work with that, ignore them and let them try to sue. Since it sounds like you won't lose your place since you just refied, unless you have a lot of expensive items paid for in your home, they won't get much anyway. It would cost them more to sue and enforce a judgement to sell than what its worth. Try to negotiate a very low or 0% interest rate and payments.

[StaciMM]

When you file ch. 13 your disposable income, your state/district guidelines, and your trustee determine what goes to the unsecured creditors. At the end of a successful plan, the remaining balances are discharged. The creditors cannot collect on a discharged debt, and there is no need for payment arrangements or negotiations.

Alot of people here seem to look down on ch. 13, but for some-its the way to go.

If I were you, and this isn't legal advice, I would just say the heck with the unsecured creditors. Maybe try and work something out a few years down the road after your IRS issues are fixed, and if they don't want to work with that, ignore them and let them try to sue. Since it sounds like you won't lose your place since you just refied, unless you have a lot of expensive items paid for in your home, they won't get much anyway. It would cost them more to sue and enforce a judgement to sell than what its worth. Try to negotiate a very low or 0% interest rate and payments.