New approach to a Chapter 13

[keepmine]

Wasn't really sure how to title this one. Slick lawyer didn't seem approiate! Anyway, here it is:

http://www.************************/...pter-13-plans/

[HHM]

Interesting, but I wonder if he has ever actually tried to do it.

[Frogge]

This seems like a good idea, I would like to know if it's been done before.

[chloe0724]

This doesn't seem to be fesable. Why would the trustee approve the plan if you clearly couldn't afford the large payuments you proposed. And lord forbid, you get stuck with a high payment!!

[lrprn]

Sometimes gaming the system just to see if it can be done can leave a filer in a world of hurt.

Some trustees are very reluctant to amend a Ch 13 filing, especially if the filer just filed and nothing significant has changed since the original filing. And what is the filer going to do while the amendment winds its way through the decision process trying to make a huge Ch 13 payment they really can't afford? Talk about setting yourself up for failure - personally except in some very unusual circumstances, it doesn't seem worth the gamble.

[HHM]

Yeah, ultimately, I see a feasibility problem and a court would likely reject the "generous" plan. The main problem is how do you really show (and how does the debtor make) a high plan payment for the first plan, then come back 6 months and reduce it without really showing changed circumstances.

It's an interesting idea, but I don't see how it would work in a practical sense.

[stopcallingus]

I am wondering if this is what my atty is trying to do. After my bk payment, mortgage, child support, insurance, daycare and utilities I am left to feed our family of 4 on $376 a month. The trustee has filed an objection to the plan and we have a hearing July 29. I can't see anyone approving a plan like that though. That is just asking for failure. The paperwork we signed when we filed was blank and they went back and plugged in the numbers later. They called us to tell us what our payment would be.

[kornellred]

The vast majority of creditors are large banks. They have neither the time nor the inclination to object to any Chapter 13 plans or the percentages they will or will not receive.
BK attorneys purposely low-ball the initial payment plan and then let the standing trustees submit their objections. Then a process of discovery begins, and a plan will eventually be arrived at and confirmed.

[holding on]

This sounds awfully shaky. Anyone who is willing to roll the dice that the trustee will indeed amend the plan has got some guts. Doesn't the 'clock' restart for creditors to object and new notices get mailed to creditors when a plan amendment is submitted? I know a good percentage of creditors don't object but that there seems to be another roll of the dice.

[HHM]

This sounds awfully shaky. Anyone who is willing to roll the dice that the trustee will indeed amend the plan has got some guts. Doesn't the 'clock' restart for creditors to object and new notices get mailed to creditors when a plan amendment is submitted? I know a good percentage of creditors don't object but that there seems to be another roll of the dice.

That is somewhat of the point of the plan...the clock DOES NOT start over as far as "objections to discharge" and amendments, all the creditors can do during an amendment is object to the amendment, but unsecured creditors practically have no grounds to object to the plan, or amended plan itself.

The problem with the plan are not the creditors but the BK trustee and BK court.