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Chapter 13 in Texas, anyone new law in progress

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    #1

    Chapter 13 in Texas, anyone new law in progress

    Yeah, its me again...

    So I asked my lawyer about this, but still need some reassurance from anyone else out there that is currently going through a chapter 13 in the Southern district in Texas.

    I keep reading about other people who get periodically audited during the 13, maybe based on tax returns or something. Is the payback set in stone or does it get periodically adjusted? I see it happens in other states, but havent heard one way or another if it holds true in Texas.

    My concern is what if my job finally picks back up and I start either making overtime or get a raise. Over the last year between my wife and I our income has dropped over 20k. It may be wishful thinking that it would someday get back up there, but if it did am I just working for the "trustee"? What about end of year bonus checks?

    If anyone in Texas has experienced any of this please let me know. It really is beyond mattering at this point, just not sure if my expectations are realistic or not.
    03/25/10: filed BK13, 05/05/10: 341 completed,
    06/24/10: confirmed (7% to unsecured)
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    #2
    One more thing, my lawyer advised to put my work truck "in the plan". so it spreads a secured balance over a longer period of time, allowing us the ability to make a 7% payback to unsecured. Otherwise we were in the negative DMI and couldnt fund the plan. My question is whether the lender can do anything if they dont want to allow this? (like repo the truck). I was due to be paid of in about 11 months, now its going to be at least 34 months according to the plan to pay off the balance. Is this something people normally do? I am ok with this, just want to make sure they are.
    03/25/10: filed BK13, 05/05/10: 341 completed,
    06/24/10: confirmed (7% to unsecured)

    Comment

      #3
      I have not filed yet, but from what I understand they will want large bonuses (which I won't likely have to worry about) and the trustee that seems to get all the business won't take any payment but a wage deduction/garnish.

      One atty wanted to put my car and everything into the plan though it is rightside up and 80 percent paid off. The second one was going to leave it out....but the payments would be rolled into the 13 once they were done. She was also looking at ways to exempt my student loans...they are not dischargeable but only get a fraction as they are unsecured. This screws you because the interest keeps on piling on.

      I am in a holding pattern because I had to change my exemptions to zero, had used cards in the recent past and bought large ticket items (tires and a mattress). However, I am admittedly reluctant to file as well. I really don't want the free world and my HR department to know.
      First consult: You go now, no CH 7 for you. You spent entire buffet. 13 has a 95 percent payback. (Owwwch) On to next consult....

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        #4
        The only thing I can tell you for sure is this: My trustee wants my tax returns every year. He will take any tax refund I get, so I don't plan to get any. And he made me put language into the confirmation order that says I will submit a new budget and schedules within 30 days of getting a job. Audit? I doubt it. He never mentioned that. But he is going to be watching stuff, for sure.

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          #5
          If your vehicle is included in the plan, and you make your plan payments - they cannot repo the truck.
          Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
          (In the 'planning' stage, to file ch. 13 if/when we have to.)

          Comment

            #6
            Good questions Amadan. I'm curious to hear the answers also.

            It looks like we were in the same building on the same day this past Monday. If you were in Galveston for your 341.
            I've not been told anything by the Trustee (or his Agent at the hearing) thus far, only that things looked in order. (This was said at the close of the 341, and they expected to confirm. At least that was the impression that I took from it) The whole 341 process took less than 5 minutes. I'm thinking that is a good thing.
            Filed Chapter 13 - 18MAR10 ~ 341 - 10MAY10 ~ Confirmation Denied - 12MAY10 :unsure: ~ Motion to Dismiss - 12MAY10 :cry: ~ Withdrawal of Motion to Dismiss - 01JUN10 :cool: ~ Trustee now Recommends Confirmation - 01JUN10 :clapping: ~ Plan Confirmed - 04JUN10 ~ Only 4Yrs 9Months left in Plan :D

            Comment

              #7
              Originally posted by Amadan View Post
              Yeah, its me again...


              I keep reading about other people who get periodically audited during the 13, maybe based on tax returns or something. Is the payback set in stone or does it get periodically adjusted? I see it happens in other states, but havent heard one way or another if it holds true in Texas.
              This is what bugs me about bankruptcy. It is a Federal program (program may not be the most correct word to use, but I'm only on my first cup of coffee) and yet practices vary state to state, and sometimes district to district.

              The plain language of the bk code states that "all disposable income" be paid in to the 13 through the life of the plan, yet not all districts check in to a persons disposable income through the life of the plan.

              I hope you get an answer from someone in an active 13 in Texas. Your attorney is also a good source to ask about what he/she has seen in your district.

              Good luck!
              Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
              I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

              Comment

                #8
                Originally posted by Amadan View Post
                I keep reading about other people who get periodically audited during the 13, maybe based on tax returns or something.
                What you're probably hearing about is the random audits conducted by the UST. Every 100 cases or so, they send the debtor's schedules, plan, bank statements, wage statements, tax returns and such off to an accounting firm that does a top-to-bottom, stem-to-stern audit of the file. The report that comes out of it details everything the auditor looked and concludes with a statement that the auditor did/did not find any material mistatements or omissions by the debtor or counsel.
                Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.

                Comment

                  #9
                  I am in the Northern district of Texas and my trustee has never asked for my tax returns, did not take any of my $10,000.00 bonus or any of my tax return money. I am about 2 yrs 4 months into my plan. It varies from trustee to trustee, but this has been my experience.

                  Comment

                    #10
                    Well, since this post I have completed my 341, and had the plan recommeded for confirmation by the Trustee (just updated on PACER). So now I am just waiting it out until the confirmation hearing. So far NO unsecured creditors have filed claims. Yes, I know wishful thinking is prevailing...
                    03/25/10: filed BK13, 05/05/10: 341 completed,
                    06/24/10: confirmed (7% to unsecured)

                    Comment

                      #11
                      Originally posted by jamesalip View Post
                      I am in the Northern district of Texas and my trustee has never asked for my tax returns, did not take any of my $10,000.00 bonus or any of my tax return money. I am about 2 yrs 4 months into my plan. It varies from trustee to trustee, but this has been my experience.
                      I got a "friendly reminder" from my Trustee to send in my income tax returns. Which of course, I had already done. In February. I sent them again. Whatever. I wish those people could keep track of documents. It is all so annoying to have to babysit them.

                      Comment

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