Trustee payment increased

[mathom1]

Hello all,
Looking at my information the other day in 13datacenter. I noticed our monthly payment had increased to $1200 from $968. Not sure how long it's been like that but we haven't heard a peep from the trustee or our BK lawyer. We've never been late and are headed into year 3 of a 5 year plan. Nothing has changed on our end to free up the extra $232 per month and we have been on time for each payment. Thoughts?

[Pandora]

did you look over your confirmation order to ensure your plan doesn't step up due to something being paid off in it (like a car) - or tax returns you didnt notify the trustee about? your plan shouldnt change unless you're notified...

I'd call your lawyer and find out why it went up if your confirmation order doesnt say anything.

[mathom1]

Confirmation order does show a bump....3 months ago We haven't paid off anything, so I'm not sure where the trustee expects to get the extra money? Why hasn't anyone contacted us?

[Pandora]

is it because you're not paying the mortgage per your previous postings? http://www.bkforum.com/showthread.ph...356#post514356 Or it could be that your arrears are paid off, thereby increasing your plan payment.

However I do have a question for you: If your plan was to let the house foreclose, and upon the advice of your attorney you were told to just stop making mortg. payments - why didn't you just surrender the house in your plan or file Ch. 7? In order to get the lien stripped you have to complete your Ch. 13 plan. Most people plan on staying in their homes that strip a 2nd... ?? Not quite understanding the logic your attorney advised vs. modifying your plan to surrender the house

[Pandora]

you know - after reading back thru your posts to try to get a better understanding of your situation - it's very clear that you should have never been in a ch. 13 to begin with given your income / debts / household size. You were org. looking to file Ch. 7 back in 2009...why the change to Ch. 13? I'm shocked your attorney advised it and even more shocked that your trustee approved your plan.

[mathom1]

Our attorney interaction hasn't been a very positive experience....long story. We did stop paying on the house and have a rental lined up. Attorney told us to stay in the house rent free until we have to leave.

As for the chap 7 vs. 13. We didn't pass the means test...attorney asked if we made more than ~$4600 per month ....we (I) do so he put us in a Chap 13. I was going to take a lesser paying job but my wife is on temporary military orders (National Guard) and they will expire Oct...so i don't have the freedom to take that big of pay cut since she will be out of work shortly.

At the time, we did want to keep the house for stability reasons (kids) Tried 4 times to do a loan mod (unsuccessfully) and now we're ready to stick the house in the banks rear end and cut our losses.

[ValleYum]

Is your wife on active duty with the Guard now? If so, has she been for at least 90 days?

If this is the case, you don't have to take the means test:

Declaration of Reservists and National Guard Members. By checking this box and making the appropriate entries below, I declare that I am eligible for a temporary exclusion from means testing because, as a member of a reserve component of the Armed Forces or the National Guard
a. I was called to active duty after September 11, 2001, for a period of at least 90 days and
I remain on active duty /or/
I was released from active duty on ________________, which is less than 540 days before
this bankruptcy case was filed;
OR
b. I am performing homeland defense activity for a period of at least 90 days /or/
I performed homeland defense activity for a period of at least 90 days, terminating on
_______________, which is less than 540 days before this bankruptcy case was filed.

Thusly, could you then convert your case to a Chapter 7? NOTE: This exclusion is set to expire December 18th of this year unless Congress extends it.

[Pandora]

As for the chap 7 vs. 13. We didn't pass the means test...attorney asked if we made more than ~$4600 per month ....we (I) do so he put us in a Chap 13.

means test is only part of the equation - you can be over median and still file Ch. 7 based on your DMI. It annoys me to no end that those attorney's who base on income alone are still allowed to practice.

[mathom1]

ValleYum....Checking on this..thx!!!
Pandora,
Based on the interaction with the attorney, we are convinced that he's scared stiff of the trustee for some reason. If I switch attorneys...I pay the legal fee again.