Trustee Objection

[thomasj]

I received a letter for the Trustee and it has 3 points. I really need some help. I have had an issue with my income since the beginning of this adventure. I started off filing for ch7 went to our 341 meeting and then I receivd a letter form the Trustee for the bk7 saying there was or is abuse. They wanted me to file ch13, so I did file.

But with the down turn in the ecomy my company took all OT and Shift differential away (I was grand fathered in) and March 3 (black Monday) just lay off 217 workers.

So then I went to my on March 21 341 meeting for the Ch13 and the Atty did not show had someone stand in and they had allot of questions.

I told the trustee that I lost $1000.00 in pay going forward and he did not care. The trustee also said the surrender of my property is not in the ch13, but I thought it was in the ch7 and the atty should have put it in the ch13. I told him that the bank already changed the locks on the condo. So that is the little bit of my story and then I got a trustee Objection letter in the mail Saturday.

1-3 The debtor has failed to apply all projected disposable income to the plan for the period of not less than three years.
Income $6376 monthly from pay stubs vice 5731 on b22 and 5213 on schedule I. Budget has disposable income. Plan length under 36 months. B22 requires 100% plan. Tax refunds. 12% plan is not appropriate.
2-9 the plan is incomprehensible or internally inconsistent and the trustee cannot administer it in its current form.Atty says real estate being returned but this is not done in the plan.
3-10 The plan is not proposed in good faith or does not comply with the code provision.Atty did not appear,(appearance atty instead

[lrprn]

It's not the end of the world to get trustee objections - in fact, they happen in Ch 13 a lot more often than in Ch 7 cases.

Your income has changed drastically since you filed and apparently the current plan does not indicate this because it happened after you filed. Your trustee is actually doing you a huge favor kicking your filed plan back to your lawyer to amend it.

Now your trustee and your lawyer will negotiate the three objections and most likely will reach a compromise that you will then have a chance to discuss with your lawyer before returning the amended Ch 13 plan to the court. Usually then your trustee's objections will be fixed and your amended plan will be confirmed.

Worst case scenario (and unlikely to happen in your case since the fixes are straightforward and not interpretations of the law)...if your lawyer and the trustee can't reach a compromise on any of the three issues, then they will both file briefs supporting their positions and there will be a hearing with your local court bankruptcy judge who will make a ruling.

We went through two trustee objections when we filed that were both interpretations of Ch 13 law and survived them both (although it did take a long time to get confirmed). You can too. Amending your plan now will save you a lot of pain down the road being stuck with a plan payment that you now can't possibly afford. This happening is a good thing - relax - you and your lawyer are getting a second chance given your recent income changes.As scary as the objections are, in your case it's a good thing so be thankful! .