Experience so far with Ch13, 341 meeting

[travelmama]

First let me say that if i could have done ch 7 i would have, 13 just has me locked in for 5 freakin years. but my mtg pmts were behind so had no choice.

Here are some things i was NOT expecting to happen nor was i told by my attorney to expect.

1. We went to 341 meeting and got that over with - fairly painless, nervewracking though, they ask questions in a way that you're not sure the right way to answer. Stick to YES /NO answers, it's all recorded. After that i received a notice that we will have to attend ANOTHER 341 meeting specifically for small businesses. *GREAT* guess my attorney didn't know that was going to happen.

2. I was not aware before hand, but am told the Trustee's office will be monitoring my income (via tax returns) every year during my Plan. The atty could not tell me if an increase in income (self employed) would bring about an increase in plan payments or overall payback. Paralegal said "probably not". *GREAT*

3. Atty did say it was OK to get a "secured" credit card in order to begin rebuilding credit. *GREAT FOR REAL*

4. Found out at the 341 meeting that any Tax Refund over $2000 (or any other "windfall" of money) will go to the PLAN and will not create an earlier payoff; it simply means more $ goes to the unsecured creditors. So in effect, if you find $10K laying on the ground, better let your brother pick it up. *FIGURES*

More to come. has not been a pleasant process. If a person was NOT behind on their mtg or could make some kind of arrangement with mtg co to catch up, i would go ch 7 all the way.







3.

[justbroke]

What you write is typical of all Chapter 13s, especially in Florida. Absolutely nothing new there. However, the minor differences are that we don't get to keep ANY tax refunds unless we hand over the refund first, and then ask permission to spend it on something reasonable. The other thing is that I've never heard of a 341 meeting for small businesses. That doesn't make sense at all. What it is, is probably a meeting to explain what types of records they DEMAND you to keep and produce and to turn over to the Trustee on a quarterly basis.

When you are not in a 100% plan, your entire financial life is under the control of the Chapter 13 Trustee. In fact, the Chapter 13 Plan will read that you submit, to the custody and control of the Chapter 13 Trustee, all disposable income. Monitoring your income is typical and especially in self-employment situations where the income could fluctuate.

Welcome to Chapter 13.

[BNKRPTinNC]

.....Monitoring your income is typical and especially in self-employment situations where the income could fluctuate.

I find it interesting that there isn't a "standard" that applies to all 13's, but maybe we're special here in NC . My wife was self-employed and we have not heard word one from the trustee, not even a request for tax returns. We have had no increase in income since filing and her business has subsequently been closed due to health reasons but you would think that the trustee would keep tabs. Go figure. Not that I am complaining or anything but I must be one of the lucky ones to get a trustee that is quite satisfied with receiving a regular monthly payment, on time.

[justbroke]

Well North Carolina is special. They don't have the U.S. Department of Justice's "U.S. Trustee" program in neither N.C. nor Alabama. (They use Bankruptcy Administrators which is a "similar" program.) They are already "different". Also, some Districts don't require any filing of tax returns with the Trustee on an annual basis. (I like those Districts!)

In reality, only about 10% of Chapter 13 bankruptcy cases ever have the payment raised during the life of the Chapter 13 (according to one Trustee in the mid-west). Trustees and Districts that do review tax returns only seek changes to the payment when there is a "significant" increase in income (usually over 10%).

Chapter 13 Trustee's (and Bankruptcy Administrators) are special. They don't get paid unless you are successful! The whole thing is about making sure the unsecured creditors get money and that you complete the plan. In fact, if you are scheduled to pay more than 70% to unsecured creditors, you are treated much differently than other Chapter 13 debtors (less restraints).