Help! Got Trustee Report..what's goin' on?

[QuietOne]

History: we filed Jan 2005; payment 700.00 a month 21.86% of debt

Husband lost job; had to sell house; trustee took all but $10,000.00

No income increase; rent is now more than house payment and equity loan

Got statement from trustee (each six months): payment now raised to $2,042 a month; 100% of debt.

What the heck is going on? We've left two messages to attorneys. Where's the notification? Why would we be changed to 100%? If we couldn't pay but $27,000 over three years before, why can we now pay 42,000 over three years? Again, no income increase.

Do they error often...is this a computer glitch...is this something that happened because someone was trying ot account for the $45,000 from the house and this was the only way to do it?

Thanks everyone.

[bkfiler]

good question. keep contacting your attorney and trustee. they know best.

it can only be changed if you make more money.

[StaciMM]

If they took the extra equity in the house-I assume 2 things. #1, there should have been some $$ from the sale available to pay creditors. #2, you should not have an issue regarding minimum payment into the plan. (The amount of non-exempt equity you had before would have been the minimum amount to your creditors in the original petition.)

My first thought is that the plan was amended to adjust your expenses as you are no longer paying the mortgage and any costs associated with the mortgage. Did you amend, though, to include your rent? Were your home expenses about equal to the difference between the old payment and the new?

You should be able to amend your schedule to make sure that your expenses, etc. are correct. Also, has your husband found a new job? If not, you might be able to convert to a ch. 7.