Amended Plan

[simonhall]

Does anyone know if it's acceptable to submit a plan that calls for the total amount of payments to be based upon a three year plan, but spread out over four years?

For example:

My disposable income is $500.00. The total paid for a three year plan would come to $18,000.00. Can I submit a plan that spreads the $18,000.00 out over four years so the payments will be smaller?

[treehugger1]

Your payment should be determined by your disposable income; after considerations for income and expenses. I doubt you can spread your payments out if the intent is to not dedicate ALL disposable income to plan payments. I'm not sure about four years. My take from my attorney in my area is that the district trustee allows 3 and 5 years plans with nothing between 3 and 5. Part of the means test and schedule 22 will lead to 3 or 5 years. I'm not sure what other areas are doing. It all seems quite variable dependent upon your region. When in doubt, speak with your attorney.

[lrprn]

Does anyone know if it's acceptable to submit a plan that calls for the total amount of payments to be based upon a three year plan, but spread out over four years?

For example:

My disposable income is $500.00. The total paid for a three year plan would come to $18,000.00. Can I submit a plan that spreads the $18,000.00 out over four years so the payments will be smaller?

The revised bk law that went into effect a year ago allows for 36 month Ch 13 plans for those under median income for their state and 60 month plans for everyone else. The flexibility judges and trustees had before then to set differing numbers of months depending on the individual's circumstances is gone.

Your Ch 13 plan is based on the amount of disposable income which is detemined by the required Means Test. Since the government is involved, "disposable income" is NOT just the difference between your income and your expenses. It's a complex calculation that varies depending on individual circumstances.

The monthly payment you make to the trustee is determined by the outcomes of Schedule I and J, not what you want to/can pay. There's really no personal leeway in a Ch 13 - when you file, your finances belong to the trustee, not to you. That's why Ch 13 should be the last resort taken when there's no other way out. Have you spoken with your lawyer about this?

[simonhall]

No lawyer, I filed my own petition before the law changed.

I know the law allows me to propose payments that go on for longer than three years. The thing is, I believe that means that I can pay my total disposable income, each month, for as many extra months as I choose. I don't know why anyone would offer to pay for more than three years if they don't have to though.

My question is, can I take the total of my disposable income for THREE years, and pay it to the court over FOUR years? That way my payments would be smaller and I could live more comfortably on my budget.

Thanks to those that replied above, every tidbit of info I can get helps!

[HHM]

Short answer, No

Even under the old law, you are required to submit all your disposible income in a given month. The key word being "all". So, No, you cannot total up what you would pay in 3 years, and pay it out over 4 years because then you would not be submitting ALL your disposible income in a given month.

Regarding extending plans, under the old law, there are circumstances in which a debtor would want to extend, i.e. non-dischargeable debts MUST be paid, and if you can't do it in 36 months, you have up to 60 (mainly IRS), Get a home out of foreclosure, etc.

[simonhall]

Thank you very much HHM, that was what I wanted to know.