How seriously should I take this objection?

[Ifonly]

The last people I expected to object to our plan did - Countrywide (BofA). I don't get it since we're surrendering the property.

Their objection basically states that the plan doesn't cover our mortgage payments in arrears (March-May,'09) prior to our filing. It also says we don't comply with U.S.C. 1322 and U.S.C. 1325 - which I googled but I don't particularly understand it. They even threw in that "debtor(s) may be delinquent in plan payments to the trustee" - which we're not. I figured they throw that one in on every objection they file just in case?

Why would they be fully compensated for anything in arrears if we're surrendering the house? (or did they miss that part )

Oh well, guess it's time for my lawyer to start earning his dough.

[justbroke]

Did you file pro se? Just asking because your Plan should clearly show the Bank (Countrywide) as a secured creditor, and in the Plan treatment (payment) area, show clearly, in words that you are Surrendering the property. If the language isn't clear, they'll just think that you didn't provide for payments of arrears in the plan.

Wait, you have a lawyer? This is getting more interesting. I wonder if he messed up the Plan and Countrywide isn't listed appropriately. Even though you are surrendering, they still have to be listed in the Plan and their treatment spelled out clearly! I'm not saying your lawyer goofed... only that someone did (either the lender, or your lawyer).

[Ifonly]

I'm looking at my filing and under 2. Secured Claims Section C. Arrears it states "none". Countrywide is NOT listed under 2. Secured Claims Section B. "Mortgages and Other Direct Payments by Debtor" They are listed under F. Surrender of Collateral.

If I dig into the full filing, the mortgage payments are used in the Chapter 13 Statement of Current Monthly Income - this is where my disposable monthly income comes out as negative $3,300.00 or so (hence the bankruptcy)

Under Schedule A - Real Property it states HOME TO BE SURRENDERED

They are listed in Schedule D as well.

They seem to be treated exactly the same as Chase Auto Finance was and they knew that the car was being surrendered.

Hmmmm.....

[Flamingo]

It's clear why they are objecting. You have not made any mortgage payments nor have included anything for payments that were due prior to your filing yet you utilize the amount of your mortgage payment in your Chapter 13 as if you would be continuing that payment and taking care of arrearages. If you are giving up the home, you are not making payments nor were making payments at filing but from what you are posting, that payment amount is listed to determine your Chapter 13. Call your lawyer.

[Ifonly]

It's clear why they are objecting. You have not made any mortgage payments nor have included anything for payments that were due prior to your filing yet you utilize the amount of your mortgage payment in your Chapter 13 as if you would be continuing that payment and taking care of arrearages. If you are giving up the home, you are not making payments nor were making payments at filing but from what you are posting, that payment amount is listed to determine your Chapter 13. Call your lawyer.

I don't think I explained it correctly....the mortgage amount is not used in the schedule that establishes our Chapter 13 payment...the rent amount is. The trustee even confirmed that we used the rent amount and that we were surrendering the home. Therefore, the above statement "as if you would be continuing that payment and taking care of arrearages" isn't true. I don't know what the other schedule is but it seemed to represent how things stood BEFORE we filed bankruptcy...it included the car payment for the car we surrendered as well and that number isn't in our plan either.

[justbroke]

Perhaps it's just a misread by your lender. I'm sure your attorney will get this corrected. Everything else looks fine with how it was documented... at least to me. I was more concerned how your Plan actually treated it... not your Schedules. The Plan is what gets confirmed.

[Ifonly]

That's why I have a lawyer, right? Yes, the plan (income less allowable expenses = CH13 payment) definitely does not use any numbers from the prior residence at all - no mortgage, no taxes, no HOA fees, etc. - just rent of $1,700 and rental insurance of $33.

[justbroke]

That's why I have a lawyer, right? Yes, the plan (income less allowable expenses = CH13 payment) definitely does not use any numbers from the prior residence at all - no mortgage, no taxes, no HOA fees, etc. - just rent of $1,700 and rental insurance of $33.

That's why you have a lawyer... exactly! The Plan is a document which actually spells out all your (unsecured) priority debt, secured debt, arrearages, adequate protection payments, valuation of secured debt and finally how unsecured creditors are paid. It also includes provisions which further define treatment of creditors by class or individually. My question was more about what was actually listed on your Plan (the document). I was wondering how that document treats Countrywide.

In the end, your attorney will get it all straightened out. Mortgage lenders are very picky about the contents of the Plan.