Not Enough Money In The Plan

[ShotMyOwnToe]

What the heck does that mean? "Not enough money in the plan", that is what my attorney just emailed me.

Was trying to keep my house under Chapter 13 and I'm behind about three months each on my 1st and 2nd mortgages.

I can make my normal house payments albeit hard. Just wasn't going to have any extra for old legal and medical bills. That is why I was opting for Chapter 13.

I qualify for Chapter 7...just trying to keep the house.

Thanks!

[quietsound]

I had the same thing. but mine had to do with how the debts were listed on the credit report.....trustee saying the plan was short $16k because some of the debt i listed was individual and he was saying it was joint and that joint needed to be paid back at 100% while individual got paid back at 1%.........

we continued the confirmation hearing until the day after the claims bar date (after the creditors deadline date) to see how they have come back. SO FAR , all of what I said is the truth, they have all come back as I stated, individual debts (not joint as he said) i even listed one as joint when it came back as a claim as individual and here i was giving them money lol......so i expect it to be confirmed, but what that means really is that either claims are coming in too high as far as dollar amounts owed or some other issue.....

what does your lawyer say about this? I am assuming it's your trustee who is objecting to the confirmation of the plan?

[HHM]

It might have something to do with the liquidation value...in a chapter 13, you must propose at least as much as the creditors would get if your non-exempt assets were liquidated in a chapter 7.

You may need to step back and look at this more objectively, if even in a chapter 13, your house payments will be "hard", can you really afford to keep the house, my bet is you CAN'T, and you would be looking at a foreclosure 6-12 months from now even if you file Chapter 13.

If you qualify for a chapter 7, and you can't really afford to keep the house, why keep the house. It might be time to accept reality for what it is.