just received notice from GM that we owe them over $14,000 !!!

[justbroke]

If your plan payment is going down respectively with the benefit overpayment, then that should make it a wash, right? I'm glad that this worked out in the end.

[lookin4info]

Our plan payment is $1094 for 46 mos. with only 1% to unsecured creditors. Can the payment go down if it all going to secured creditors, or will the plan just be extended for up to 60 mos. Worried about that.....

[justbroke]

Our plan payment is $1094 for 46 mos. with only 1% to unsecured creditors. Can the payment go down if it all going to secured creditors, or will the plan just be extended for up to 60 mos. Worried about that.....

There are several factors that determine your base plan payment. There's the Chapter7 liquidation test, which can determine a minimum if you have property that you're keeping which isn't exempt. There's also the DMI test.

If the liquidation test is $0.00 (usually negative), and your DMI is negative, then you'd only be paying the secured creditors and the Trustee commission. If the $1,094 includes 1% for unsecured creditors, solely because you were showing positive DMI, and now the DMI is reduced due to unavailability of the retirement funds due to offset, then your % for unsecured creditors, and therefore your payment, would naturally go down. Your payment cannot be less than what's required to pay the secured debt, priority debt, and Trustee payment.