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    Question Payment plan

    Hello,

    Currently, I am getting my ducks in a row with the objective to file for Chapter 13 next month. I have already hired an attorney and he estimated the payment based on my income and amount of debt. The estimated payment seems high but still better than paying minimum payments on credit cards. I have read that most of the times, the final payment is higher than the initial estimate. So question, based on your personal situation, did your payment change dramatically after the 341 meeting? thank you.

    #2
    My payment was exactly what I estimated. You will probably fine that many debtor's payments are the same as projected. The issues come when the Chapter 13 Trustee sees something that you may not see. For example, some debtors estimate their payment but don't consider tax refunds. The Chapter 13 Trustee actually takes your average tax refund (over the last 2 years), divides by 12, and adds it back to your income. This is probably the biggest area where the numbers differ.

    Another area where the Chapter 13 Trustee and the debtor have a different number is with respect to expenses. If you exceed any of the "local rule" guidelines or the IRS financial collection standards (the United States Trustee program re-categorization of those standards), then you will get pushback. That pushback will likely lead to a higher payment.

    This is why I would recommend waiting for your attorney to estimate the payment. That would be closer to reality than trying to guess without the advantage of local practice.

    I'm sure you'll get replies from no changes to big changes.
    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.

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      #3
      Thank you justbroke. This has been a stressful process so far and I havent even started it. I know the budget will be tight and I hope that I dont have to do a major repair or get a significant life change in the next five years. It will be difficult to put money aside for emergencies. That is my biggest worry. I am okay if I have to eat rice and beans with an egg. I actually enjoy it. lol. I typically get a small 3-4 percent salary increase every year. I hope the trustee doesnt go after it.

      Comment


        #4
        Our payment was the same, they tried to get more after the 341 meeting, but since it was 100% it didn't increase.

        I doubt they will try to to take 3-4% raises. I have read it's only over 10% when they might get interested.
        I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

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          #5
          Our payment increased 5 times, but we didn't start at a 100% plan. We shifted to 100% about halfway through. Our current payment is more than double the original payment. We got lucky, though, when my husband got a significant raise; since we were already at 100% they did not come after it.

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