Budgeting income

[ramone]

So, I was wondering why we're busting our butts to stick with our budget but yet we still are just making it by (even though we haven't used any of our discretionary portions of the budget or other items that are budgeted for). Upon looking closer at the budget that our attorney set up, I noticed that our monthly net income was much higher than it is in reality. It turns out that he took our annual pay and then divided that by 12. The problem lies in that we are paid biweekly so there are 26 pay periods in a year for us and not 24. Those 2 extra pay checks spread over 12 months means that our *budgeted* monthly income is actually $650 more than we really bring home (in 10 out of 12 months). Our next "3 pay check" month isn't until December. Our 341 meeting is this week but I can't see how we'll make until December. With no savings to fall back upon, our budget can't take that $650 hit for that many months.

[bkbiker]

Call your lawyer on Monday and have him/her file an amended plan reflecting your true income.

Good luck,
bkbiker

[drednm]

You're right.... the idiot trustees use this sort of pay schedule to their advantage and there seems to be no system in place that allows a fair monthly payment for those with this sort of pay period. There is NOTHING fair about Ch 13 and the trustees have WAY too much discretionary power.

[Jman30]

You're right.... the idiot trustees use this sort of pay schedule to their advantage and there seems to be no system in place that allows a fair monthly payment for those with this sort of pay period. There is NOTHING fair about Ch 13 and the trustees have WAY too much discretionary power.

I agree, but you also have to see that not all of this is a personal vendetta by a Trustee. They do have rules and laws that they legally have to go by. I know they have some leeway and believe me, I AM NOT STICKING FOR THEM, but I think sometimes we get into a groove where are mad at our situation and blame the trustee. I know in my case, I have honestly not had alot of problems with my Trustee. Of course, now that I said that, I will have my case dismissed tomorrow. LOL

To the original post....I would definitely call your attorney and see if you can amend your plan. What % does he/she having you paying back? If it is 100%, you are probably out of luck but if it is less you may have some wiggle room.

[SinkingFast]

When we were Consulting with attnys, they all asked what the pay rotation was. Weekly, semi-montly, every 2 weeks, and so forth. So they could take that into consideration regarding figuring income and potential Ch 13 plan payments. Your attny shoulda taken the fact that you are paid every 2 weeks into consideration when figuring up your plan payment to start with.

As others have suggested, now that you've noted this problem, you need to contact your attny ASAP. Maybe he/she can meet with the Trustee and get your Plan ammended BEFORE your 341. Or, at the very least, be prepared to present an ammended payment plan to the Trustee at the 341.

[ramone]

Thanks for your replies. Below is the response from my attorney when I pointed my concerns out to him:

You are going to have to make this work or face the harsh
reality that you are not a sympathetic debtor in the bankruptcy system.
This particular problem can be solved (and I think has been solved) by a
payroll order. Your monthly payments are multiplied by 12 then divided
by the number of payroll periods (26 in your case) so that the amount
taken from your pay will be the same regardless of the number of payroll
periods in a month.

He doesn't get it. In our case, that payroll order will improve things by $25 per month not $650! I replied to him and told him that our plan is destined to fail as written and that we may have to do a chapter 7 if this isn't corrected.

Any advice?

[Jman30]

I can't speak too much to the payroll issue, but the way he addresses you in the first sentence is harsh. You are paying him and you have a legitimate question.....there is no need to scold you like a little child.

They attorney's forget that they work for us, not the other way around. I would let him know you appreciate his answer but take exception to how he spoke to you. I am sure you understand the harsh realities without him having to remind you.

[ramone]

Forgot to mention our 341 is in 14 hours.

Thanks for your replies. Below is the response from my attorney when I pointed my concerns out to him:

You are going to have to make this work or face the harsh
reality that you are not a sympathetic debtor in the bankruptcy system.
This particular problem can be solved (and I think has been solved) by a
payroll order. Your monthly payments are multiplied by 12 then divided
by the number of payroll periods (26 in your case) so that the amount
taken from your pay will be the same regardless of the number of payroll
periods in a month.

He doesn't get it. In our case, that payroll order will improve things by $25 per month not $650! I replied to him and told him that our plan is destined to fail as written and that we may have to do a chapter 7 if this isn't corrected.

Any advice?