Plan Base

[drew999999]

This is a really vague area that I'm also not up to speed on. My plan base looks like it was calculated based on expected claims plus trustee fees. Monthly payments are currently plan base divided by 60. For my situation, actual claims that came in are about 8k above the plan base. Not sure what will happen at the end of mine, but guessing that they will still want the 8k. Any thoughts from others in this situation? I'm in a 100%/60 month plan.

[justbroke]

Arrears would not put you in a 100% plan. Arrears, past due taxes, attorney fees, and the Trustee fee must indeed be paid 100%, but that doesn't make it a 100% plan (unless there are no unsecured creditors that have allowed claims).

You are in a 60-month plan probably because you are over-the-median income and are required to be in a 60-month plan.

[mylife]

Justbroke, your assumption is correct. We are in a 60 month 100% plan which we know because it shows on 13 data center. Why, I don't know. Could it be because we have a home that we want to keep in which we are paying the arrearages in the plan? I assume that that is not the case as we were able to keep our tax refund last year because it was non-exempt. Atty said we had more than enough room left to make exemptions.

As for income, that's questionable. Since filing my husband's income has decreased and mine stayed the same but when we presented this argument to the atty, we were told that my income increased, which it hadn't. He was comparing different time periods one in which included an extra commission payment. Looking at ytd, it's the same.

[justbroke]

We're expecting a child in March and the atty said he will request reduced payments for about 5 months. Will that exend our plan or will we have to pay more later to meet the plan base?

I'm assuming that the 5 months is a maternity leave question and you won't have that income. in these cases, the plan may be extended. Since your plan is 100%, I suspect that the plan would need to be extended. However, if you're in a 60 month plan, your plan cannot extend beyond 60 months. You would end up with a balloon payment at the end.

The key is "why" you're in a 100% plan! If it's simply due to income, then you may be able to be in a "less than 100% plan". If it's because you were trying to protect assets, then you have no choice than to pay 100% of the plan base (which includes the allowed unsecured claims).

[mylife]

We're expecting a child in March and the atty said he will request reduced payments for about 5 months. Will that exend our plan or will we have to pay more later to meet the plan base?

[kascls]

Ok, so we the monthly payment will continue as is until we reach 60 months. At the end of the 60 months we will have paid in considerably more than the plan base. Is the difference refunded at the end? I guess I am trying to understand how the Plan Base relates to anything if you are in a plan that is less than 100%.

[justbroke]

If you are in a 100% plan, you would stop paying and file a Motion to Modify Confirmed Plan to end it sooner. The Trustee's office would refund any overpayments.

[mylife]

Thank you justbroke. So once we hit the plan base with making our regular payments, we're done before the 60 months? If they continue to take the payments through 60 months, will we get a refund for the amount over the plan base? I guess this is all irrelevant now because we're 1 year in with 4 more to go.

[newbie2]

So, if the plan is not 100%, what significance is the Plan Base? I ask because our plan will hit the 60 payment mark in October of 2012. Based on our monthly payment, we will exceed the Plan Base in June. I know we won't finish early, we are in it for the full 60 months but will our monthly payment amount change?

No, your monthly payment won't change.

[kascls]

So, if the plan is not 100%, what significance is the Plan Base? I ask because our plan will hit the 60 payment mark in October of 2012. Based on our monthly payment, we will exceed the Plan Base in June. I know we won't finish early, we are in it for the full 60 months but will our monthly payment amount change?

[justbroke]

Thanks Justbroke. Is the plan complete once this amount is paid?

As stated, if you're in a 100% plan, then the plan base is what you need to pay to complete the plan. If you pay it off early, then you are done early!

[mylife]

Thanks for the response. You answered my question as a yes because we are in a 100% payback plan. I was not asking about an early buyout.

[keepsmiling]

If you have completed the original term of the plan or are in 100% payback, yes.
There aren't usually early buyouts for less than 100%, if that's your question.

[mylife]

Thanks Justbroke. Is the plan complete once this amount is paid?

[justbroke]

It is simply the Trustee's calculation of the minimum amount of money that you need to pay through the Trustee during the life of the Chapter 13.