<sigh> The UST entered the 707b yesterday,,,,,

[justbroke]

Right, I agree. But the UST told us something about something you could file to stop the fees, he said "I don't know why everyone doesn't do it, because you can file X and there are no more quarterly fees".

THis is the same guy who told you that you qualified for a Chapter 13 and could file no matter what your 109(e) limits were?

A Chapter 11 is no joke. You are a Debtor In Possession (DIP) and you are the Trustee (unless is extreme cases, the Court appoints one, but you have no money to pay one... so that's moot). You have reporting requirements. You have to get your Plan approved, and it is voted on by the creditors.

While I had planned to use Chapter 11 as my backup, and I had studied many of the facets and mechanisms involved... it's still alot of work.

[biotechsolution]

I have a feeling your creditors will file objections to your paying
your student loans and not paying them.

[justbroke]

I have a feeling your creditors will file objections to your paying your student loans and not paying them.

Well, in a Chapter 11, the Plan is voted on. The Student Debts that Teacher has are $400K. They are probably the largest unsecured creditor. The largest 7 unsecured creditors get to vote, with it weighted. Guess who will win?

[biotechsolution]

But how much will there vote count since the debt is non-dischargeable?
If I'm another creditor my argument is they will be paid anyway.

[justbroke]

But how much will there vote count since the debt is non-dischargeable?
If I'm another creditor my argument is they will be paid anyway.

The Code only reads that the non-priority unsecured creditors (of which student debt is in that class) and secured creditors get to vote.

Chapter 11 allows one to pay non-dischargeable debt in the Plan.

[goingcrzy]

justbroke - have you seen anywhere that the chp 11 quart fees can be waived?

[TeacherMomma]

To the poster above who asked why I was cited for abuse, it was because they are not allowing my student loan payments to be used as an expense, and are counting that money as disposable income. So to them, I have all kinds of money to pay my other creditors.
And yes, I know Ch 11 is a lot of work.....I know. I just had surgery and I am just so not up for this at the moment. I have until 8/12 to file my response and I am just no where in the frame of mind to write it.

What the UST said about the quarterly fees the more I think about it and ask my husband, was something about once the plan is approved and all that, I can request that the case be closed and therefore no more fees. I know he did not mean closed like it was over.....but it was something like that. I called and left him a message yesterday so I will ask him if he calls me back.
And yes, justbroke, this is the same gentleman who said I could do a 13, and apparantly the same one who thinks I STILL can since he wrote it all over the motion he filed despite the fact I do not qualify. LOL

[TeacherMomma]

The Code only reads that the non-priority unsecured creditors (of which student debt is in that class) and secured creditors get to vote.

Chapter 11 allows one to pay non-dischargeable debt in the Plan.

My home and my student loans make up the top 7. In fact, there would be no room left for anyone else (Credit Cards) to vote since the largest 7 of mine are ALL SLs and my home. So yeah, I guess they win!

[justbroke]

justbroke - have you seen anywhere that the chp 11 quart fees can be waived?

From what I know, absolutely not. 28 USC 1930 (f)

The only way for the Trustee to make money, in order to monitor the case, is through this monitoring fee. It's as little as $250/quarter to thousands of dollars a quarter. This is usually based on the size of the case (disbursements done in the quarter). The fees are all in 28 USC 1930 (6).

Actually, I just looked, and one of the UST's (North Carolina) published a guide!!! (And the price went up!)

http://www.usdoj.gov/ust/r12/PDF/New_Fee_Schedule_Notice.pdf

So, it's $325/quarter for amounts from $0-14,999.99 per quarter. So if you were paying out less than $5,000/month, you'd get the $325 fee. Otherwise, the next $60K costs $650/quarter. (Yes, that's $325 + $650 for $15,000 to $75,000 a quarter in disbursements.)

[TeacherMomma]

I got this back from a friend from another board.....the waiver of fees was not a waiver, but it had something to do with requesting a final decree and if the court determines the case has been fully administered then the case is closed and no further fees are due. Since in a ch 11 the plan now becomes my contract with the creditors to pay, once it is confirmed I can be "closed".

No CLUE!

[TeacherMomma]

To update, I spoke to the UST today about the 11 situation and he answered my questions. One was regarding the issue above with the fees. He said that once the plan is confirmed and my first payment is made I can petition to have the case closed since we are now under a contract with the creditors through our plan. Once the case is closed there are no more fees. So the "Waiver" was my own mistake, for lack of terminology I used that word. And it is not a waiver. Since there is no trustee, nothing to monitor in a Ch 11, there is nothing really to pay for after you are confirmed. I guess.