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    #1

    Payments went up.....

    Hi I am new to this forum and I just filed chapter 13. My confirmation hearing is this Friday. My payments were estimated at $575, an amount that fitted my budget. My attorney called me today and stated he had to change that amount to $955 for the confirmation hearing. After that amount get confirmed, I can file a motion or request for a lower amount. I am a single parent already facing hardship, I just can not afford $955 a month. I have already invested $1600 in attorney fees just to get to this point. Should I dismiss the case and try to work directly with my creditors or wait until the Trustee dismisses due failure to pay the full amount? I am so lost.
    I thought I was doing the right thing by filing Chapter 13.
    Tags: None
    #2
    Need more information... Why did your payment amount go up if you budget showed you only had $575 available for payment? Did your attorney give you any reason for this? I understand the difficulties of being a single parent... You said confirmation is this Friday? Why now? If it wasn't an issue brought up at or by the 341...
    Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
    Motion to Discharge: FILED!! 08/07/13
    60 down/0 to go \m/(*.*)\m/ 100% complete!

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      #3
      No it was not an issue at the 341. I was already two months behind on my mortgage and my attorney fail to include that in the plan so my mortgage company file an objection. This is the reason why they are increasing my payment.

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        #4
        To keep the property you will have to pay the arrears. That is set in stone, now if the rest of the payment is going to unsecured that is where you will have some wiggle room. I would talk with your attorney and see what percentage you are paying back to unsecured.

        Do you know what that percentage is and how much?
        Filed Chapter 13: 3/12/07
        Confirmed 5/14/07
        Last day from Claims 7/10/07
        Trying to stay under the radar

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          #5
          No I am not sure of the percentage. What if I can not afford to pay the $955. My attorney adviced that I commit to the $955 so my case can at least get confirm and they will request a lower amount after confirmation. Does this sound reasonable to you? There is no way I can pay the $955.

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            #6
            To me personally it sounds like trouble. I would demand an explanation from the attorney as to why the amount is what it is, what is your percentage payback to unsecured. I am not a fan of lawyers as it is and to me I the first thing that would cross my mind is that my lawyer was taking the easy way out.


            It's your call, but I know I would not want to agree to something that I could not do. Thats basically what got us all in this mess in the first place.
            Filed Chapter 13: 3/12/07
            Confirmed 5/14/07
            Last day from Claims 7/10/07
            Trying to stay under the radar

            Comment

              #7
              There is no reason to wait until after confirmation to change this, other than your attorney possibly getting an extra fee from you.. The trustee/judge/creditors are all just as inclined to object to your changes either way. There is NO WAY that I would enter with a payment that I knew was doomed to fail. You need to consult with your attorney immediately.
              Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
              Motion to Discharge: FILED!! 08/07/13
              60 down/0 to go \m/(*.*)\m/ 100% complete!

              Comment

                #8
                Thank you all...this just did not feel right to me. I called the attorney and let them know that I can not commit to $955. I also call the Trustee and left a message. I just did not like what the attorney told me....that I have two choices either commit to the $955 just to get it confirm so they can file a request for a lower amount or dismiss the case. This made me so mad...you mean I paid you $1600 for you to tell me this? Some attorneys are just out for themselves instead of helping. I would have never filed if I known it was going to be this high.
                Last edited by Freedom08; 10-28-2008, 02:07 PM.

                Comment

                  #9
                  I would have to agree that it looks at first glance like your attorney wants to wait until after confirmation to file a modification, because he wants to bill an extra fee.

                  Make him explain to you (over and over again if necessary in the plainest terms possible) why the payment went up, and why exactly he wants to wait until after confirmation.

                  PS: I believe the court fee is also much lower to amend the forms you already submitted pre-confirmation, as opposed to filing a motion to modify the plan - which is what you will have to do to make changes AFTER confirmation.
                  You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

                  Comment

                    #10
                    My Chapter 13 Trustee called but I was unable to answer her call. Before I call her back, is it wise to talk to her directly or talk only to my attorney? Something my attorney said that did make any sense to me. I took out a Wells Fargo loan to consolidate my debts. I used my car as collaral...did not know at the time that it was unwise to turn unsecure credit into secure. Anyway, at the time I took the loan, I only owed about $3,000 on my car. So I received from Wells Fargo Auto $3,000 plus $7,000. My attorney is allowing Wells Fargo to receive the entire $10,000 under my repayment plan, when $7,000 of it was unsecure loans. Would it be wise for me to talk directly to the Trustee or would this be starting conflicts with the Attorney?

                    Comment

                      #11
                      If you took out a loan and used your car as collateral, it's all secured. I don't understand how you are saying that 7K is unsecured????
                      You may have paid unsecured debt down with the loan, but because you used your car as collateral, the loan is secured...............
                      You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

                      Comment

                        #12
                        Thanks for the bad news. :

                        Comment

                          #13
                          Sorry
                          Maybe that is why your payment went up, to accomodate the secured debt for the car......
                          Have you thought about letting the car go?
                          If you let it go, then the bank would have to sell it, and whatever the difference between what the sell it for and what it's worth is then "unsecured". Something you should discuss with your lawyer, I think..........

                          whoops ...just noticed in reading through a previous post of yours that the past due mortgage payments are the reason for your increase.......sorry, didn't notice that before. I think a "sit down" with your attorney is in order.
                          What is the percentage you are having to pay your unsecureds in your plan?
                          Last edited by krielly; 10-29-2008, 10:56 AM.
                          You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

                          Comment

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