Our Ch 13 Plan *NOT* Confirmed

[lrprn]

We had our Confirmation hearing yesterday and as expected, our Ch 13 plan was not confirmed.

The issues are:
* Our mortgage company filed an objection saying we were in arrears one month when we filed (we weren't and have their own invoices to prove it)
* Trustee thinks we are "double-dipping" on our health insurance costs. There's confusion because of the way my company documents medical and dental credits. On my pay receipts, they look like income, but they aren't income - just the amount my company contributes montly toward our health and dental insurance. I have confirmation these two credits are not income and aren't reported to the IRS from my HR Payroll folks.
* Our trustee is lumping hubby's and my bi-weekly retirement contributions in with repayment of his five loans against his retirement - combined that puts us over the 5% of gross income contribution towards retirement allowed in our bk court. Our lawyer says if the trustee won't budge, he'll file a brief (pro bono - whew!) just to ensure the judge has to make a ruling and get this settled once and for all.
* Because of our income issues, this may bring up the prior six months of income before filing vs. future income argument as well, so we could end up being the test case for this in our court too.

The plan - our lawyer will meet with our trustee and mortgage company to attempt to resolve all the issues. If any of the issues can't be resolved, we go back to court on October 5 and the judge will make a ruling. Until then, we just keep making our monthly payments to the trustee.

Hmmmm.....why is it so hot and just what am I doing in this handbasket????

Seriously, what's happening around our filing is my worst bk nightmare coming true. Any advice on how to weather the next few months and/or personal experiences with any of these issues to share?

[Minnymouth]

Pull up a chair, sit down, take a deep breath, and ride with the tide till it's settled. Let your attorney "rock all the boats" and keep an eye on what he is doing in your best interest......

Yes, you have some issues, but just because a Trustee wants, doesn't mean the Judge is going to let him have it.....

Now is the time to develop a lot of "patience".................. you will need it....

[jane taylor]

Bless you!!!! My heart goes out to you and you are in my thoughts and prayers. Please, please feel free to PM anytime if you just need to vent! My nerves are shot to the place with the handbaskets today (sick, sleep deprived, interviewing for jobs, and HOT!), but I am always here to chat. We gotta hang in there together.

Sip on a nice glass of good sweet tea if you like it, an "adult beverage, or eat some chocolate! And find somewhere you can go and scream--I put myself in Time-Out all the time!

Take care--
jane

[FoolAndHisMoney]

Just another case of a chapter 13 debtor trying to do the right thing by paying whatever you can towards your debts and getting pissed on.

Good luck and hopefully it will all work out.

[aa06a47]

I'm sorry your going through the confirmation nightmare. I went through that myself but ended up settling by paying more money.

As far as your 401K loans go, trustee cannot deny them. Now, he may not allow you to contribute additional money to the 401k, but there is nothing in the code that say's only 5% can go to paying off 401k loans. They are an allowed expense, there is no stipulation on that. The additional money you want to put in each month...well, depends on what the judge wants.

My medical expenses were on my check exactly like yours. Good part about it, they were subratced back out on the next paragraph of expenses, so it was clearer to the trustee. It was never an issue.

[anonymuse]

I'm sorry to hear this LRPRN. But, you know you are in the right, and have the documentation to prove it. You just might have to smack someone on the side of the head a few times to make sure they understand.

Hang in there! And, of course, come here to vent.

[lrprn]

Thanks for the great advice and support, Minny, Jane, FOMO, aa, and Anon. It's such a good feeling to know that no matter how crummy a day I'm having, I can come here for a little b*tchin', hand-wringing, and venting as needed. Doesn't get better than that.

Hubby and I are buckling ourselves in for the coming rough and tumble bk ride knowing that eventually it will come to an end. (Sure wish I had a crystal ball though...and does anyone know a good psychic? ;) )

[bkbiker]

Hi,

I feel your frustration; I went through this 5 years ago as the trustee objected to my confirmation and threaten dismissal.

After I gather all the paper work he wanted with my own explanations and sent it in myself to my chapter 13 trustee (by - passing my good for nothing attorney at that time, who by the way was also very well paid ) the trustee was satisfied and withdrew his objection, ha it was so nice to be confirmed.

Watch your attorney closely and if he/she does not come through for you, than start writing your own brief explaining everything in detail and gather all the paper work to prove it. Than send it in to your lawyer and the trustee if needed, this will also make you feel a little better because now you are becoming pro active in your case.


Good luck,
bkbiker

[$$only4ever]

I, too, had alot of problems getting my plan confirmed, but it did happen. Hang in there, and let your attorney do what he gets paid to do. I know it is easier said than done, but try not to worry, things will work out. It is all about compromise, compromise, comprise.

[SinkingFast]

Here's hoping the Trustee can see the trees for the forest and get it all straight in his/her mind.

Sometimes when there's lots of numbers floating around, even the smartest economist gets confused. Let's hope that's all it is and your Trustee sees the error of their ways.

Chin up!! You know we're always here for you!!

[lrprn]

Thanks, biker, $$ and SF - great advice and I'm doing my best to not get overwhelmed with the "what if's" and keep my eye on the prize - confirmation!

Chin up!! You know we're always here for you!!

Awwwwwwwww! I'm having a warm and fuzzy moment here .....thanks, SF! I really needed that encouragement tonight.

Don't know what I'd do without all of you here in the forums - here's a virtual [hug] for every one of you!