Ch 13 Modified Payment options..

[jetsfan2010]

When I filed, my 6 month look back of income included a sign on bonus my job had paid us. it was a one time deal, and we know we wont be getting it any more, however my lawyer had to include it in the income. That made my schedul1 I average out to be more(400/mo) than what I saw in reality. My plan was set up as a 100 percent payback, and my original schedule I vs J looked like this
3600 shed i
2600 sched j
1000 net income

Now, as I did my taxes, I recalculated the last 6 months of income and this is what it looks like now
3200 sched i
2650 sched j
550 net income.

I am assuming these raw numbers would drastically decrease my 13 payment, however I want to know are there any issues that could arise from asking for a modified plan? Could the trustee say no?

[shark66]

Has your plan been confirmed?

Your attorney could ask for it to be modified, and if the Trustee objects which is quite likely, the judge will have the final say...

Good luck.

[jetsfan2010]

yes it was confirmed earlier this month.

[shark66]

You have an attorney and he/she should know where to go from here...

It might not be pleasant, but it's certainly doable.

Good luck.

[jetsfan2010]

Attorney said it wouldnt be too bad. Have to give him updated stubs, etc. He also said trustee would likely want to review my taxes, which isnt a big deal, because I am not getting a refund lol.

[kornellred]

It seems what you are saying is that you were forced into a 100 percent payback plan because of the one-time sign-on bonus artificially raising your monthly income, and thereby inflating your disposable monthly income. That situation should have been addressed prior to plan confirmation, don't you think? One-time payments and yearly incentive payments and bonuses have always been problematic elements in determining realistic disposable monthly income figures for Chapter 13 filers. Most filers, aware of the 6 month look back period, simply delay filing until such payments are out of the look back window. To avoid exactly the same situation that you are in now.
If it can be shown that you will not be able to afford your plan as currently confirmed, you will be successful in obtaining a modification.

[jetsfan2010]

It seems what you are saying is that you were forced into a 100 percent payback plan because of the one-time sign-on bonus artificially raising your monthly income, and thereby inflating your disposable monthly income. That situation should have been addressed prior to plan confirmation, don't you think? One-time payments and yearly incentive payments and bonuses have always been problematic elements in determining realistic disposable monthly income figures for Chapter 13 filers. Most filers, aware of the 6 month look back period, simply delay filing until such payments are out of the look back window. To avoid exactly the same situation that you are in now.
If it can be shown that you will not be able to afford your plan as currently confirmed, you will be successful in obtaining a modification.

well the numbers are what they are regarding the income. the funny part is you said "if it can be shown you will not be able to afford your plan as currently confirmed", the only way I can think of showing that is to fall behind on 13 payments, which is something I dont want to do.

[kornellred]

Well ....if you can afford your monthly payments using your real monthly income as a basis, then you will have a hard time getting the trustee to petition the court for a payment modification. The numbers themselves will prove that you will not be able to afford the plan as confirmed, if they are correct. If they are correct, you will not be able to pay your living expenses and make the plan payment. Simple as that! Chapter 13 does not require that you cut your living expenses in order to make the plan payment. Chapter 13 requires you to pay whatever is left over after your living expenses have been taken care of. This is not punishment for getting into debt.