Moratorium of Payments now wage order

[Redsox]

Hi everyone,
We submitted a Moratorium of payments for two months to have enough money to put down on a car. After submitting the order, the trustee submitted an objection claiming that if the moratorium is to be approved it must include a wage order. Is this something we can object to and have the Judge rule on it or do we have to have a wages garnished by this over zealous trustee?

[kornellred]

The judge will not overrule the trustee - you can be pretty sure of that. Buying a car is probably not a good enough reason to grant a moratorium of payment. You cannot reduce your plan base by any amount without modification, so you will have to make up the difference by making extra payments after the moratorium - maybe that is what the trustee is aiming at by stipulating a wage order.

[Redsox]

We have filed an amended plan with the increase in our payments to account for the moratorium of two months. Our payments increased $150 for the remaining 2 years left on our 5 year plan. We have paid for 3 years without a wage order I don't know why this an issue now?

[despritfreya]

Let me guess. . . Your Trustee is DK.

Have not dealt with a "forced" wage assignment. Which Judge do you have? Might want to check judge's procedures to see if there is some sort of "mandatory" requirement out of the Tucson division.

http://www.azb.uscourts.gov/default.aspx?PID=65

Why did she say you must have a wage assignment? Do you have a history of slow or no pay? What does your attny say?

You might not want to argue over this, especially if your employment is solid. At least with the assignment you do not have to remember to send those stupid money orders to the out-of-state lock box.

Des.

[Redsox]

You got it! DK is a pill. We have made every payment for three years maybe a few days late here or there but never missed one. If they garnish my wages the medical group I work for will have a fit. Legally I know they cannot fire me, but they can make my life miserable. I would rather they not know about it. There are no specific requirement in Tucson and my Judge is Marlar. Maybe we should withdraw the moratorium...i dont know.
DK stated that if a wage order is not granted then the trustee object on the basis that the Debtors have failed to demonstrate the likelyhood of successfully completing the plan. REALLY!!!! 3 years of payments in a five year plan down but we still haven't demonstrated that the plan will succeed!? She sounds like she has a brain tumor.

[despritfreya]

DK stated that if a wage order is not granted then the trustee object on the basis that the Debtors have failed to demonstrate the likelyhood of successfully completing the plan.

Along with the Modified Plan did you file an Amended Schedule I&J? If not, that explains her concern. You are 3 years into this case and things do change. You have not shown that you can still afford the (new) Plan payment as well as the (new) vehicle payment. Assuming a new budget (I&J) has not been filed doing so may resolve the problem.

If you did file a new budget I am at a loss over this issue but your concerns are well founded. Taking the issue to Judge Marlar might be your best bet - especially since he is going off the Bench (retiring) at the end of the year. I do not handle many Tucson cases but I can tell you in one of those cases I did have an issue with the Trustee. Marlar pretty much told the Trustee to go away.

Des.

[forgotten]

= At least with the assignment you do not have to remember to send those stupid money orders to the out-of-state lock box.

Some of us are lucky enough to have a trustee that accepts personal checks and can use our banks bill pay service.