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    Filed one week ago

    Hi, everyone. One week ago I met with my attorney and filed same day. I am married and filing individually. However, we are in a community property state so we are including my husband's CC bills in the filing. My attorney advises me I will be in a 5-yr 100% repayment plan. I had hoped/expected to be eligible for a Ch7 due to my husband being out of work for 5 months. However, even though the 6-month lookback period qualified us as being below-median, since he is now working again we are no longer considered Ch7 eligible. I was disappointed by this, but I am happy he is working again and making decent money. The amount of our projected monthly payment is less than our minimum payments on all accounts, so in any case it is a win.

    My 341 meeting will take place in mid-January. After reading a LOT here on this forum as well as other online sources, I feel well-prepared for the 341 meeting. The only thing I'm a tiny bit worried about is getting there on time and finding decent parking. I scoped it all out online, I found several nearby parking facilities, and I will budget plenty of time to get there and get parked.

    We do all our banking and homeowners+auto insurance with USAA. I was nervous about them possibly freezing our accounts or dropping us as customers. So far, though, all that has happened is my USAA Visa card has disappeared from my online profile. No money frozen, not dropped as insurance clients.

    I am actually at this moment listening (sort of) to the 2nd BK course. First course was completed at the attorney's office on the day of filing.

    My lawyer has wonderful reviews online and has been very easy to work with so far. He's friendly, very responsive to emails and phone calls, and very reassuring.

    So far, I believe I have a good handle on what to expect as I move forward in the process.

    Here is my only question: I see many people on this forum say their monthly payment is being taken directly from their wages through garnishment. My lawyer did not say anything about this. Instead, he said to bring a money order or certified check in the proper amount to the 341 meeting, and to plan to make the monthly payment every month by electronic debit or check. Is the wage garnishment usually only done if a payment is missed? Or is it mostly just due to trustee preference?

    #2
    It could be by preference but I know it isn't only if payments are missed, I just filed in Oct & my atty automatically set it up as a payroll deduction. I wasn't given an option which I really don't mind, it's easier for me if it just comes out & I don't have to worry about paying it. 🤷‍♀️

    Comment


      #3
      Originally posted by JellyBeany View Post
      Here is my only question: I see many people on this forum say their monthly payment is being taken directly from their wages through garnishment. My lawyer did not say anything about this. Instead, he said to bring a money order or certified check in the proper amount to the 341 meeting, and to plan to make the monthly payment every month by electronic debit or check. Is the wage garnishment usually only done if a payment is missed? Or is it mostly just due to trustee preference?
      Whether or not your district required a "wage deduction order" is specific to that District. In some Districts, that let you pay direct or via a monthly checking account withdrawal.

      In my District, the first payment and all subsequent payments are never given directly to the Trustee. They go to a PO Box in Tennessee (the infamous "lock" box). If your attorney says that your District allows direct payment, then I would do that. I would see if my Trustee has it set up where you can have the amount automatically withdrawn (mine did). That allowed a couple of extra days of processing for me as they did direct withdrawals (ACH) and on the 17th of each month.

      As for whether the Trustee could then seek a wage deduction order (WDO) after you fail to make timely payments is another district or even Trustee specific issue. In fact, if you miss payments the Trustee may just seek dismissal. As a condition of reinstatement, the Trustee "may" ask that you consent to a WDO.
      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


        #4
        Thank you for your responses, everyone! I assume my lawyer would have told me if WDO were required so I assume for now it is not. As soon as the amount is finalized in confirmation I will set it up as an automatic electronic payment from my bank account. I fully plan to never be late or miss a payment!

        Thank you again. Happy 2020 to you all!

        Comment


          #5
          As far as making too much income for ch7 going forward, you don't want to get into the habit of turning down jobs and promotions even though it made you ineligible for ch7. I'm glad he did not turn down the job on purpose to qualify for ch7. Jobs are precious nowadays and you don't want to end up in the group of chronically/permanently unemployed due to lack of recent work experience. The next job opportunity may be months or years away and it may pay a lot less.

          If you are in the central district of California, the vast majority of trustees (all of them?) will not have a WDO.

          As far as parking, I noticed most of the lawyers choose not to use the super expensive parking garage in the bankruptcy building. They dumped a bunch of coins into the meter or used one of the other garages.

          Comment


            #6
            I'm in Southern California and we didn't have an automatic withdrawal, when I asked my lawyer about it he said it depends on the Trustee and your situation. My Trustee strongly encouraged everyone to use the TFS website which is like an electronic money order site. They have fees which are similar to what you would pay for a money order and everything is processed electronically. If you want you can even make it an automatic payment once or twice a month. Personally I did it manually cause I wanted to control the day it was paid. I also had to pay late once and it was fine, just let your lawyer know as soon as you think you might be late and they will advise you and hopefully help you navigate any problems.

            Good luck with your chapter 13, just take it one day at a time.

            Comment


              #7
              Howdy, everyone. I had my 341 meeting this morning and it was about as smooth as could be. No oddball questions. I was complimented by the trustee’s counsel about how organized I was. All I did was put all the required IDs and requested paperwork in a plastic sleeve to keep it all together.

              My appointed time was 10am. I arrived about 25 minutes early. My lawyer was there and reviewed a bunch of details with me, then asked the trustee if we could go ahead and do our thing. So, I was done with the meeting 15 minutes before my appointment time. Once we concluded she told me I had to wait until 10 just in case one of the creditors showed up but none did so I was dismissed around 10:05am. Easy Peasy.

              One interesting thing happened while I was waiting. Another couple and their attorney were giving their statement to the trustee and the trustee ripped into the attorney. “Don’t present a payment plan that looks like this. You need to correct it or I will move to dismiss!” I don’t know what the issue was but the trustee wasn’t having it.

              It seems anticlimactic. Thank you all for your information and support. You’ve made this process much more palatable than it would have been otherwise.

              Comment

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