New here and big trouble...please help..

[aces67]

Okay after months of going back and forth with my atty and the trustee our Ch 13 confirmation hearing is set for the 27th of this month. The trustee has finally said that we can afford to pay $12 K total.

My question is this???????? We didn't have much debt to begin with. We had approximately $3000 in CC and absolutely no personal loans. We also had a car that we didn't want/couldn't afford. I had owned the car more than 910 days so I guess I could have kept it and done a cram down?? Anyway the attorney said let it go back so we did and now we owe a deficiency balance of $8500. So if we only had $11500 total in debt that means thru the BK we will be paying back 100% of what we owe right?? Or does the finance company still only get a percentage of the deficiency balance??
They sold the car for $4500 which is what it bluebooked at.

Where do I go from here?? Would you confirm this or dismiss and deal with it on your own???

I'm so ready to fire my atty. We have a meeting on Monday to discuss this. In the meantime does anyone know what happens with this deficiency balance? The finance company has already filed their claim to the trustee for the full amount of $8500.

The trustee says we can afford so much b/c he found that in 46 months dh's truck note will pay off therefore we will have an additional $450.40 a month to pay to him.

Any help/tips here??

I know we screwed up! But what do we do now??

Thanks!

[lrprn]

Welcome to BK Forum - glad you found us!

Well, you are in a mess, that's for sure. I have some questions for you.

Did you file and reaffirm the car loan before the car was sold and that's why you owe the $8K? (If you didn't sign a reaffirmation agreement, then you don't owe the difference between the loan price and the sale price of the car.)

Why did your lawyer tell you to sell the upside-down car with the loan that was more than 910 days old rather than keep it and cram down the loan price through your plan?

Since you owed so little unsecured debt, why did you file for Ch 13 in the first place? Or were you forced from a Ch 7 into a Ch 13 because the trustee thinks you have enough disposable income?

What state are you in? How many are there in your family? What's your family's gross annual income?

What did your Means Test show you had as disposable income to put towards a Ch 13 plan? (Schedule I & J)

What were your trustee's objections to your original filing?

Car loans in a Ch 13 can be spread out over the life of the plan with the trustee making the payments. Any reason why your husband's truck payments are being paid by you rather than the trustee?

Sorry for all the questions. It will help us help you better if we have more details about your situation. Hang in there!

[aces67]

I filed my BK before the car was sold but I NEVER reaffirmed it. I went into the BK filing process with the intent to surrender the car.

I have no idea why my attorney told me to let the car go back unless ultimately we won't have to pay the deficiency balance.

The trustee forced us into a CH 13 because we make too much money for a CH 7.

I'm in TX with a family of 4. Our gross income is approx $75000 a year but our net income is only about $48000 after taxes, insurance and etc. People think we are raking in the bucks but we live in a very remote area so it takes $600 a month in gas just for dh to go back and forth to his job.

The means test showed ..if I'm reading it right $86.61.

The trustee claims that not all of the disposable income is going towards the BK payment. He has found extra money left over even though we have no money left over at the end of the month. Since our original filing our budget numbers have gone up dramatically due to medical expense for my 8 month old and my dh's job sold out so he's making $100 a month less.

Again, no idea why my lawyer didn't include dh's truck in the plan. We owe $17,000 on it and it's worth about $11000 running ...right now something's wrong with the motor though so it's a yard ornament for the moment.

We meet the attorney tomorrow morning to discuss all this I really think he gave us bad, bad advice.

Do you think we are actually liable for the $8500 deficiency?? If not why would the trustee want us to pay so much?? We would end up paying more than the actual debts equal to.

Thanks for listening and helping!!

[lrprn]

The means test showed ..if I'm reading it right $86.61

If you are reading it right, then you don't have $100/month disposable income and shouldn't be pushed into a Ch 13. However, right now the law is in incredible turmoil because the revision done back in 2005 was so badly written. Sounds like your trustee has decided to find some money to push your disposable income up just enough to fund a Ch 13 plan. What payment are they proposing a month?

The trustee claims that not all of the disposable income is going towards the BK payment. He has found extra money left over even though we have no money left over at the end of the month.

Where did he find extra money besides your husband's truck payment?

Since our original filing our budget numbers have gone up dramatically due to medical expense for my 8 month old and my dh's job sold out so he's making $100 a month less.

When you meet with your lawyer, ask him to file an amended plan that reflects your new circumstances.

We meet the attorney tomorrow morning to discuss all this I really think he gave us bad, bad advice.

At this point it's hard to tell. You might just have run up against a very prickly trustee who is looking to push as many people as possible into a 13 in his district. Does your lawyer specialize in bankruptcy? How much experience does he/she have handling Ch 7 and 13 cases in your area?

Do you think we are actually liable for the $8500 deficiency?? If not why would the trustee want us to pay so much?? We would end up paying more than the actual debts equal to.

First of all, you can't be asked to pay back more in your plan than the total of all the debts. If you are, your lawyer needs to challenge that.

If you surrendered the car as a part of your bankruptcy, the car was purchased more than 910 days ago, and you did not sign a reaffirmation agreement, then you don't owe whatever is left over after the lender sold the car at auction. Ask your lawyer to explain why if he says you are liable for the money. If the lender filed a claim to recoup the money they lost at auction, then your lawyer needs to challenge that.

I hope the talk with your lawyer goes well. Keep us posted on what happens Monday and ask questions whenever you need to - we're here to help if we can. Hang in there!