Ch13 estimated payment increased?

[more$moreProbs]

My lawyer ran my "numbers" and gave me an estimated plan payment for my potential ch13 case. Have you heard of it ever changing come 341 meeting?

Also, one of the lawyers I spoke to says I need to include my car payment on the plan. Another says I do not. What is the real truth?

I am just starting on this overwhelming and awfully depressing ordeal and I want to make sure I come fully prepared for what I'm about to face. This forum is helping tremendously as there is so much information to take in.

[CATCHMEIFYOUCAN]

Estimated Payment Increased?

Ch13 estimated payment increased?
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My lawyer ran my "numbers" and gave me an estimated plan payment for my potential ch13 case. Have you heard of it ever changing come 341 meeting?

YES ! Mine did, I filed Ch 13 and the Median Test showed I was NEGATIVE $60, but schedules I and J showed I had $800 available. Well my lawyer proposed $250 payment plan (since congress set in place the Median Test as part of the new BK laws). At the 341 meeting the Trustee went with schedules I and J. Who knows what Congress' intent was when they added the Median Test. I had to go before the judge, and he didn't want to decide which plan, but it looked more so on the Trustees favor. So I didn't have to much of choice - not really - I could quit one job and convert my case to Ch7 and pay nothing or foresee 5 years in Ch13 hell paying $800 a month. You do the math!

Also, one of the lawyers I spoke to says I need to include my car payment on the plan.

Not necessarily, I kept mine out of the plan and paid the note on my own.

Another says I do not. What is the real truth?

The real truth is THE CHOICE IS YOURS ! The only benefit I see paying the car note within a Ch13 plan is that IT GETS PAID as you make you payments to the trustee overtime. More will chime in here to better explain that as I'm not experience on paying a car note within the plan.

I am just starting on this overwhelming and awfully depressing ordeal and I want to make sure I come fully prepared for what I'm about to face. This forum is helping tremendously as there is so much information to take in.

You'll get through it! Stay on the forum and soak everything in!

Best of Luck, Catchmeifyoucan

[Flamingo]

My lawyer ran my "numbers" and gave me an estimated plan payment for my potential ch13 case. Have you heard of it ever changing come 341 meeting?

Yes, ours did. Your first payment will be due 30 days after you file and that is the amount of the first payment you will make until instructed otherwise. It could change at the meeting.

Also, one of the lawyers I spoke to says I need to include my car payment on the plan. Another says I do not. What is the real truth?

Your lawyer apparently is cramming your car into your plan ; that means you will only have to pay back the FMV of the vehicle plus maybe some interest stretched out over your plan.

I am just starting on this overwhelming and awfully depressing ordeal and I want to make sure I come fully prepared for what I'm about to face. This forum is helping tremendously as there is so much information to take in.

Be thankful you have so much wonderful information at your fingertips and be thankful for the internet. We filed in 4/02 and not much good information was out there. We got a lot of bad advice prior to our filing.

[kmb]

Our payment changed too--our lawyer proposed one thing and when we had our 341, the trustee wanted $400/more a month to confirm the plan. We are paying our cars and mortgage outside the program, and I would highly recommend that you do also. Not only is your trustee going to get a higher amount of money since they get a percentage of your monthly payment, but it we waited 4 months after our plan was confirmed before the trustee distributed the first round of payments, which means our mortgage and cars would have been showing 4 months late! Right now they are the only positive accounts left on our credit reports.

[lrprn]

Our Ch 13 payment changed after our 341 as well. We filed eight months after the current bk law went into effect and became a test case for our district on two sticky points of the current bk law regarding Ch 13.

After hearings and briefs filed by our lawyer and our trustee, when the dust finally settled 15 months later our payment went up $150/month. Since our trustee wanted it to go up much more than that, we were satisfied with the outcome.

What happened to us is VERY unusual - don't stress about it! But we are living proof it's possible to survive three Ch 13 objections to our plan (two from our trustee that were resolved and one from our mortgage lender that was thrown out by our bk judge) and remain standing!

[HHM]

It is quite common for the trustee to tinker with the plan. In fact, I'd say that nearly %90 + of the time, the trustee finds "something" to object too in order to up the plan payment.

Unless your original plan was way off base, or your schedule of expenses has some odd entries, any change in the payment is usually minor (less than $200).

[catalina2225]

My attorney gave me a figure within minutes of our first meeting and he was right on the button right through confirmation.

[wayne-o]

My trustee wanted more I had the option of paying more per month or extending the life of my plan. I filed under old law so it was going to be only 36 months. I opted to pay the extra it was about 100 more a month than my lawyer said.

****note to KMB***** I know all trustees are different but I had both my car and home paid through the plan. The trustees only took a percentage of what was paid to the unsecureds, I did not pay any extra for the house and car. I actually liked having them in the plan, I knew they were gonna get paid.

[kmb]

Wayne-o

I suppose that works if you have to pay for your car through the life of the plan, but both mine and DH's will be paid off about 3 years in to the 5 year, so that's two years of extra $$$ that will be in our pockets and not going to the unsecureds. According to my attorney, the trustee won't come back and ask for a modification that late in the game.

Again though, every trustee is different, but since it was 9 months after our 341 and 4 months after we confirmed before our trustee paid one cent to anyone, including the secured (taxes), I wouldn't have wanted to have to deal with the aftermath of cleaning up my credit report when my mortgage, HELO and car payments showed up as being 9 months late! As they are now, they are showing up current, never late, and while IIB is over most of my report, these items are all reporting current and in good status.

[wayne-o]

good point. I guess it was nice to have some positive tradelines coming out of your 13. I did have small problem with my mortgage co. I sent them a copy of the court order declaring my account current and proof of payments since letter and they corrected.

[MajorMike]

Our trustee took the attorney's recommendation and said that he just wants to get them done. He doesnt fuss over em.

[more$moreProbs]

Thank you

Thanks everyone for their response. I find it very interesting on how each lawyer has very different opinions and estimates. Its almost hard to give them the benefit of the doubt.

Anyhow, my husband and I are still in the midst on deciding on the right lawyer. It's very hard to come to terms with this decision but I know its the right thing to do considering our situation.

[poor@budgeting]

interview several BK lawyers before deciding

Paralegal brought in papers to be signed for filing. Lawyer seem unprepared and was surprised with the amount/length (lower than the original estimate from previous meeting) but claims that it is due to some obscure State ruling.

341 - meeting- lawyer showed up seemed unprepared once more -mistakenly(discussed during first meeting) assumed that the BK is for individual instead of joint. During the meeting, the trustee lawyer pointed out incorrect(double) deductions on the schedule, missing requested documents etc. Later that day, lawyer submitted an amended payment(more than double than previously proposed, even 20% higher than the first estimate).

First confirmation hearing did not go - trustee objected - for missing documents and was rescheduled. On the day of 2nd confirmation hearing, lawyer called to say that there are 2 creditors that filled secured claims and if I have any knowledged about it. My lawyer has these documents even prior to the fist meeting - again, not prepared! Agreed that we will just pay these outside BK since lawyer claims that it would cost me more if he spends more time on it. Confirmation approved - shows that agreed to pay secured debt. Per lawyer & order, payed the 2 secured debts - sent copy to lawyer & trustee. Found that Trustee payed the two creditors again - hopefully they will refund my money back after audit at end of BK.

Good Luck....finding a good lawyer seems to rank up there with find a good mechanic.

[lrprn]

....finding a good lawyer seems to rank up there with find a good mechanic.

So true! Your bk lawyer can make or break you during Ch 13 because writing a strong plan you can live on for five years is much more an art than a science.

Sorry to hear you've had so many problems with your lawyer, PB - hope things go smoothly from here on out.

[toomuch]

Paralegal brought in papers to be signed for filing. Lawyer seem unprepared and was surprised with the amount/length (lower than the original estimate from previous meeting) but claims that it is due to some obscure State ruling.

341 - meeting- lawyer showed up seemed unprepared once more -mistakenly(discussed during first meeting) assumed that the BK is for individual instead of joint. During the meeting, the trustee lawyer pointed out incorrect(double) deductions on the schedule, missing requested documents etc. Later that day, lawyer submitted an amended payment(more than double than previously proposed, even 20% higher than the first estimate).

First confirmation hearing did not go - trustee objected - for missing documents and was rescheduled. On the day of 2nd confirmation hearing, lawyer called to say that there are 2 creditors that filled secured claims and if I have any knowledged about it. My lawyer has these documents even prior to the fist meeting - again, not prepared! Agreed that we will just pay these outside BK since lawyer claims that it would cost me more if he spends more time on it. Confirmation approved - shows that agreed to pay secured debt. Per lawyer & order, payed the 2 secured debts - sent copy to lawyer & trustee. Found that Trustee payed the two creditors again - hopefully they will refund my money back after audit at end of BK.

Good Luck....finding a good lawyer seems to rank up there with find a good mechanic.

Wow poorb! So sorry about the hassles. You are right on about finding a good lawyer. Might as well hire a car salesman

Toomuch