Newbie here with some questions about creditor claims

[sophieanne]

@anunezal...thanks for the clarification....I should've known the fee was for the quarter (not by the month) . Credit card claims will come in up to the deadline...so it could be a waiting game. Don't look at pacer all the time..it can be costly and drive you crazy.

[anunezal]

sophieanne Thank you for information. I was wondering when the Proof of Claims come, now I see that I have to wait till the last minute to find out!

[Carmella]

I see others have responded. I missed the question you asked me! We are close to hitting the 2 yr mark. As others have said it's my impression that since some creditors do not file the plan ends early; it ends when everyone who filed is paid.

[Carmella]

Just a comment about PACER, it's now up to $30 before you are charged ($30 per quarter) and if you are looking at your info, who filed, etc you can down some of the documents so you don't have to search for it again and get charged. It's not the easiest site for me to navigate because I don't understand what the links/choices mean and I have clicked on some to get info that I don't need and it gets added to the count 10 cents per page.

[shipo]

1. Are there any creditors that actually don't file claims within the 70 days? Most of my debts are large amounts from the biggest lenders around. Do any just let them go or am I just kidding myself?
2. If I get a raise or bonus do they take that from me? If so what is the amount most consider cost of living each year?
3. Do they raise my payments each year if I do get extra money?

I was in a very similar situation to you back in 2015 with something around $250,000 in unsecured debt (generated primarily from two small-business failures); the debt was spread across several credit cards as well as two business loans, all of which were from major lenders.

With the above in mind, a few comments:

1. In my case at least, all of my creditors filed claims.
2. The terms of my Chapter 13 stipulated the Trustee would evaluate my tax return every year and A) take everything above a $1,250 tax return, and B) recalculate my monthly payment if it indicated an increase in pay (presumably over a certain threshold).
3. During my five year Chapter 13 journey I received six bonuses, five merit increases in pay, and one promotion with its own increase in pay; the total change in my gross income over the five years was about 38%, and yet, with the exception of most of one tax return, my payments to the Trustee didn't change. The way I managed that was to bump my 401K contributions each year so my yearly taxable income stayed within $1,000 of the year I filed.

[flashoflight]

[*]During my five year Chapter 13 journey I received six bonuses, five merit increases in pay, and one promotion with its own increase in pay; the total change in my gross income over the five years was about 38%, and yet, with the exception of most of one tax return, my payments to the Trustee didn't change. The way I managed that was to bump my 401K contributions each year so my yearly taxable income stayed within $1,000 of the year I filed.[/LIST]

The tax return includes a copy of the W2 and that will show the real income prior to the 401k via the Medicare wages. 7.6% per year doesn't seem worth the trouble for the trustee to increase the plan payment in a confirmed plan especially if part of it is cost-of-living increases that everyone should get due to inflation.

[shipo]

The tax return includes a copy of the W2 and that will show the real income prior to the 401k via the Medicare wages. 7.6% per year doesn't seem worth the trouble for the trustee to increase the plan payment in a confirmed plan especially if part of it is cost-of-living increases that everyone should get due to inflation.

I'm not sure about your W2, but mine shows Box 1 (Wages, tips, other compensation) which contains taxable wages (which does not include any money deducted for a 401K), there isn't a single box on my W2 which shows my gross income for the year. Granted Boxes 3 and 5 (SSN and Medicare) show a higher income number compared to Box 1, but still many thousands less than my gross.

[flashoflight]

Box 5 might exclude an HSA/FSA? Box 12 with code D and amount also exposes the amount of your 401k contribution.

I would not want the trustee to see that extra money was voluntarily diverted to a 401k to hinder and frustrate those poor unsecured creditors.

[shipo]

Box 5 might exclude an HSA/FSA? Box 12 with code D and amount also exposes the amount of your 401k contribution.

I would not want the trustee to see that extra money was voluntarily diverted to a 401k to hinder and frustrate those poor unsecured creditors.

Well, I am only speaking of my experience here; over the five years of my Chapter 13 (final payment made earlier this month), my income went up over 36%, and yet, on paper at least, my net income changed less than 1%; the Trustee never adjusted my monthly payment into the plan.

FWIW, looking at my 2019 W2, the Box 1 number added to the Box 12 Code D number came up to roughly $17,000 less than my gross. I maintain, there is no way for the Trustee to see my actual gross income from my W2.