Can a trustee increase payment on 100% payback plan?

[GoingUnderInNV]

I was jsut thinking about my plan over the long-term: Given the number of creditors that filed claims during the eligible period, my payback plan is at 100% over a total of 56 months. So, my question is this: can a Trustee (legally? morally?) increase a BK13er's monthly payment, given that he/she is already scheduled for a 100% plan in fewer months than the legal limit?

If the Trustee does, is there a legal recourse for the bankrupt party, either with the bankruptcy judge or in civil court to stop the action?

No, it hasn't happened, but I was just pondering it... Thoughts? I'm no lawyer, but it seems to me that it would be rather unfair, and possibly actionable..

[lrprn]

can a Trustee (legally? morally?) increase a BK13er's monthly payment, given that he/she is already scheduled for a 100% plan in fewer months than the legal limit?

I believe when a plan is set up for a 100% payback but later on something changes to increase your payment is that your plan will run even less months that originally stated.

Once your non-secured, priority, and secured creditors that filed claims and are to be paid in full 100% by the time your plan ends are paid what they are owed, your case is done no matter how many months it was to run originally. If you do happen to pay in any extra over the 100% (for ex, the auto-payment that you set up to pay the trustee doesn't get stopped in time), after the trustee does his/her final accounting with all your creditors, any extra you paid over the 100% is returned to you by the trustee.

[HHM]

If your already scheduled for 100% payback, and you are within the 60 month timeframe, I don't think there is anything the trustee can do to increasse the payment.

[DeadManCrawling]

Dang. I don't have ANY secured creditors except the mortgage, which is current.

From reading the above, could this have happened/::

If we had ONE secured creditor, say an auto loan that we owed $8,500 on.

And we had 80k in unsecured credit cards.

We could structure it to payoff the auto over a 60 month period at perhaps $225.00 per month.

And give the unsecureds $25.00 per month?

Resulting in the secured auto being paid off and the unsecureds getting virtually nothing?

Sounds like it COULD work, legally, though I doubt this is what the new law meant to happen.

DMC

[aa06a47]

Generally, the way I understand it, if your in a 100% payback, you can pay it off at anytime. Increased payments will only get you done sooner, not make you pay more.

[aa06a47]

DMC, it all depends on if you have the secured being paid inside or outside of the plan. The disposible income to pay the trustee increases by the amount of your secured payments if you pay them inside of the plan. For example, if your house payment is 500/month and you pay the 500/month outside the plan, your basically giving the trustee 500/month less per month that you would if the payment was paid by the trustee in the plan. Typically, in our out, it doesn't matter, the total payment or "disposible income" remains the same.

[aa06a47]

Dang. I don't have ANY secured creditors except the mortgage, which is current.

From reading the above, could this have happened/::

If we had ONE secured creditor, say an auto loan that we owed $8,500 on.

And we had 80k in unsecured credit cards.

We could structure it to payoff the auto over a 60 month period at perhaps $225.00 per month.

And give the unsecureds $25.00 per month?

Resulting in the secured auto being paid off and the unsecureds getting virtually nothing?

Sounds like it COULD work, legally, though I doubt this is what the new law meant to happen.

DMC

See my note above this one. If this were true, you could structure your 30 year house payment to amortize in 5 years and give the unsecured nothing. Secured debt generally is paid outside the plan at the original contract agreement. On your forms, you specify either in or out of the plan. If it is outside the plan, it takes from the disposible income, if it is in the plan, your disposible income goes up and goes to the trustee. While a good thought, double dipping is now allowed.