Nagging questions and confusion...

[athomas]

I'm desperately searching for answers and think I must have the worst atty. ever...

DH and I filed for Ch. 13 in Oct. 2004. Atty. first proposed a 36 mo. plan, which was promptly changed to a 60 mo. @ 60%. We had some arrearages with our 1st and 2nd mortgage, as well as a motorcycle which we wanted to keep.

Based on 13datacenter, we have around 33 bi weekly payments remaining until our plan base is reached. The thing that confuses me is that it appears as though none of our creditors filed a claim except for the arrearages. The motorcycle has since been paid off and sold (attorney told us this was fine). Every claim showing has been satisfied...does the trustee just automatically divide the rest to the remaining creditors despite their failure to file claims, or am I reading something wrong?

We desperately want to sell our house, but the atty has given us conflicting information on how to do this, how it works, and whether or not we even can. DH currently works in another state, and lives there while the kids and stay here. It is no way to live, but we are trying to make the best of things. I am just trying to research and fully understand things so I can get this process moving. I don't want to dump time and money into preparing this house to sell if it is not likely to happen or even possible. His initial information was that it would take 6-8 weeks to get approval to sell...now he is telling us it is an 8 month process. That being said, I am aware of current market conditions and know there is more to the challenges we face trying to sell than just our BK.

Anyone have any advice? I am beyond confused, and just want out. We've made it this far, and we can afford our plan payments, etc., but if we can sell, be a family again and let this all behind the future could be very rosy. We are looking to have an extra $1000 a month based on what a rental would cost in our future town after the BK is done. That would go a very long way towards the braces my daughter needs, saving to buy a home again down the road, etc. I just don't quite know how to get there!

[AngelinaCat]

Hi athomas: Welcome to this forum. While I cannot answer your questions right now--DH and I are an Asset 7 case--know that I/ we do feel your pain. I don't remember any of your prior posts. I will look tomorrow for them.

I suggest that you search on some members who are/were C13 cases. Ms. Flamingo is one; she and her husband filed under Old Law. Also search the index of this forum for C 13 cases that are currently in progress:

Here is the link:

http://www.bkforum.com/forumdisplay.php?f=7

Good luck to you. I will keep your questions in mind and see if I can offer something esle.

[athomas]

Thanks for your response! I don't have a ton of posts here...I tend to be a lurker, trying to find comfort and information from others. I just feel so anxious. Like I said, we can make it through, but I feel there must be a way to get this done.

Our lawyer's fees cover any follow up visits, questions, etc. through the life of the plan, but he has only given me conflicting information and caused more confusion.

[lrprn]

... it appears as though none of our creditors filed a claim except for the arrearages. ... Every claim showing has been satisfied...does the trustee just automatically divide the rest to the remaining creditors despite their failure to file claims, or am I reading something wrong?

Although your plan may have been pushed to 60 months, once all claims have been paid 100%, you can't be forced to continue to make payments over what you owe.

Ask your lawyer to get you a early pay-off amount. That will get your trustee looking at your case more closely and you'll find out what the remainder you owe actually is. When it's zero, then your trustee does an audit to confirm all accounts are paid as agreed and you will receive the notice that you are discharged.

As far as the wait for your trustee to approve putting your home on the market, there are factors you need to keep in mind if you sell during an active Ch 13:
- If you have sufficient equity in your home now that you can't fully protect with your state exemptions, that could open you up to the trustee taking part of the proceeds. How much equity (house value minus loan(s) value) do you have right now in the current market in your area? What state did you file in?
- There's a tremendous backlog right now in both trustee offices due to the very high number of filings over the last year, and they are increasing. That could be one reason for a delay (but 8 weeks to 8 months - that's not realistic).

If I were you, I would set up a face-to-face appointment with your lawyer as soon as possible and get this hashed out. Do not leave the office until you understand where you stand with selling your home and the current status of your Ch 13, including how long it will be until your plan is done. Good luck and hang in there!