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Why would the confirmation hearing occur before the claims bar date?

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    Why would the confirmation hearing occur before the claims bar date?

    My claims bar date is 2/11 and the hearing is on 2/10. Shouldn't be continued?

    Also, because I claimed my son and my mother in 2020 on my taxes, they were listed as dependents and therefore the box on Form 122C-1 is set to 36 months based on median income for a family of 4 but my plan payment is actually calculated at 60 months. Why are people that makes less than the median income forced into a 36 month plan on this form when a 60 month plan is actually more affordable if you're paying 100%? Is this is big deal or no big deal?
    Last edited by womanonfire; 01-25-2022, 03:21 PM.

    #2
    I can't say how the Georgia courts handle this. Florida does an Initial Confirmation Hearing which is ALWAYS continued days down the road.

    A person that is under-the-median income is not forced into a 60-month plan. This usually happens because the debtor's income is not enough to cure any arrears within the 36-month minimum plan payment. An under-the-median debtor need only propose a plan at least 36 months. Some choose 60-months just to spread out the payments.

    If you want to pay in 36-months, ask your attorney. But being in a 100% plan with a 36-month payback period is likely real tough. I don't think I've seen a 100% plan under 60 months... but they do happen. It's all about the 100% in that case.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Originally posted by justbroke View Post
      I can't say how the Georgia courts handle this. Florida does an Initial Confirmation Hearing which is ALWAYS continued days down the road.

      A person that is under-the-median income is not forced into a 60-month plan. This usually happens because the debtor's income is not enough to cure any arrears within the 36-month minimum plan payment. An under-the-median debtor need only propose a plan at least 36 months. Some choose 60-months just to spread out the payments.

      If you want to pay in 36-months, ask your attorney. But being in a 100% plan with a 36-month payback period is likely real tough. I don't think I've seen a 100% plan under 60 months... but they do happen. It's all about the 100% in that case.
      This what is confusing:

      The actual form and code states:

      21. How do the lines compare? Line 20b is less than line 20c. Unless otherwise ordered by the court, on the top of page 1 of this form, check box 3, The commitment period is 3 years.

      and...

      11 U.S.C. § 1325(b)(4)

      For purposes of this subsection, the “applicable commitment period”—
      (b)(A)subject to subparagraph (B), shall be—
      (i) 3 years; or
      (ii)not less than 5 years, if the current monthly income of the debtor and the debtor’s spouse combined, when multiplied by 12, is not less than—
      (I) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;
      (II) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals; or...

      So our median income for 2021 was less than the median income for our household size. I guess you are saying that it is common for plans to be confirmed at 60 vs. 36 in this kind of case?

      I'm telling you GA is messed up! It's all starts with them stingy exemptions and goes down hill from there but I guess it could be worse. Tennessee's homestead exemption is horrible!

      If I could claim 100% homestead exemption like you Floridian's, this would be a cake walk!

      Comment


        #4
        Originally posted by womanonfire View Post
        So our median income for 2021 was less than the median income for our household size. I guess you are saying that it is common for plans to be confirmed at 60 vs. 36 in this kind of case?
        I'm saying that debtors, who are only required to be in a 36 month plan, sometimes propose plans of a longer duration to spread out the payments that they may not be able to meet to cure arrears.

        The bankruptcy code can get a little complex. This is why we hire attorneys. There are nuances and other parts of the bankruptcy code that are applied together and then even aligned with the bankruptcy procedure rules. We must remember, in the end, that we can have a plan approved so long as the creditors and trustee agree. The rules in 11 USC 1325 help us to get a plan approved over the objection of the creditors and trustee.

        For example, you could propose a 1 year plan... so long as you paid 100% of the allowed unsecured claims!

        But yes... complicated.

        Originally posted by womanonfire View Post
        I'm telling you GA is messed up! It's all starts with them stingy exemptions and goes down hill from there but I guess it could be worse. Tennessee's homestead exemption is horrible!
        Except for the unlimited homestead exemption Florida's exemptions are also stingy. Among the lowest in the country... but we get to keep our $8,000,000 home!

        Originally posted by womanonfire View Post
        If I could claim 100% homestead exemption like you Floridian's, this would be a cake walk!
        As you now know, we do have the unlimited homestead exemption but we only get $1,000 to protect our car and $1,000 to protect all our other property. (If we don't use the homestead exemption, then we get an extra $4,000 wildcard... per debtor.)
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          For means testing purposes (entirely a Federal law):

          1. Your income for tax year 2021 is not relevant in determining if you are above or below median.

          2. The calculation (above or below median) is based upon the average of the monthly amount for the six months prior to filing x 12 ='s "annual income".

          3. If your "annual income" is below median income your commitment period is 36 months HOWEVER, you can elect to go longer. You cannot go beyond 60 months for the Plan.

          4. If your "annual income" is above median income your commitment period is 60 months.

          5. Be it below or above median income, you cannot finish a Chapter 13 in less than the commitment period unless you pay 100% of all allowed claims.

          As to the exemptions, you are bound by State Law.

          Hope that helps.

          Des.

          Comment


            #6
            Originally posted by despritfreya View Post
            For means testing purposes (entirely a Federal law):

            1. Your income for tax year 2021 is not relevant in determining if you are above or below median.

            2. The calculation (above or below median) is based upon the average of the monthly amount for the six months prior to filing x 12 ='s "annual income".

            3. If your "annual income" is below median income your commitment period is 36 months HOWEVER, you can elect to go longer. You cannot go beyond 60 months for the Plan.

            4. If your "annual income" is above median income your commitment period is 60 months.

            5. Be it below or above median income, you cannot finish a Chapter 13 in less than the commitment period unless you pay 100% of all allowed claims.

            As to the exemptions, you are bound by State Law.

            Hope that helps.

            Des.
            Yes claiming dependents on my taxes and putting them on the form screwed me up.

            I feel MUCH better knowing that I can elect to go longer. They should update the form to say that because some of us are so literal when it comes to this, thank you!

            Comment

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