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I filed chap 13 in Jan 2011. At the time, I was not interested in paying attention to anything I was signing. But now that I am considering starting a new business entity, and applying for a provisional patent this week - my bankruptcy has become a concern of mine. In reading over the court papers, noticed a form my attorney filled out that said if I didn't make 'x' amount of money annually (in CA), than I was not to be put on a 5-year plan but instead a 3-year plan. The form is even filled out stating that I didn't make enough money, and the attorney checked off the 3-year option -- however I am paying on my bankruptcy for 5-years. So this is wrong, correct? I know I am asking something I should refer to my attorney, but I wanted to get the honest opinion of someone before I attack my attorney on something I don't fully understand. Any insight would be much appreciated, thank you!

Also, I wanted to inquire about trustee disbursements. Are the disbursements suppose to pan out in the same percentages to the same lenders every month? Because I am seeing some huge inconsistencies, most of which seem to be in favor of the attorney fees. But every time I try and call my trustee to have them explain it, it says "their phones are down". I'm started to get really peeved by this: evil: ... again, any information anyone would like to give me would be much appreciated. Thank you.




You should be talking to your attorney about this..,.that is what you are paying him for.

Sub: #1 posted on Mon, 07/02/2012 - 06:43

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17272 | Credits: )

I am also in chapter 13. The trustee changed the amount of the payments and the term (changed mine to 4 years). From what other people have told me this is not uncommon. The payments also are inconsistent. The attorneys fees are firs.:rolleyes:

Sub: #2 posted on Mon, 07/02/2012 - 08:28

kstedman kstedman

(Posts: 19 | Credits: )

Hi, instead of answering you-I have question for you! My husband is planning to file bk> I am the one who is very scared and doing all the homwwork-and this process -got to learn few things. But nothing like if answer comes from someone is going thru is :(.

Attorney gave a very high payment plan for 5 years to my husband. But I read somewhere and as you stated here-my husband's median income is lower than average state income. Therefore he should, just like yu should qualify for 3 years. Now question for you -- is your payment lowered?? I see now you are in 4 year paymen -- so did ask them to increase the amount or amount stayed the same just lowered the timing?? Please let me know-- it would be a great help.
:confused:

Sub: #3 posted on Mon, 07/30/2012 - 16:49

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I believe the income is based of the household, not just his income.

Sub: #4 posted on Mon, 07/30/2012 - 16:54

SOAPLADY SOAPLADY
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(Posts: 17272 | Credits: )

Soaplady thank you ! In my case we have just one income.My husband has not filed yet-but he is planning.He had few consultation with an attorney --and the payment and plan he told him that he qualify for is 5 years. But after doing some leg work- I think since my husbands income is lower than state median so he qualify for 3 years. And I am assuming - that means he will pay for 3 years. Am I right??? Please let me know - also does that means payment increased payment amount for 3 years since it would be paid for sess time. Please help. Thanks in advance.

Sub: #5 posted on Mon, 07/30/2012 - 17:03

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Quote:
In my case we have just one income. . . he told him that he qualify for is 5 years. But after doing some leg work- I think since my husbands income is lower than state median so he qualify for 3 years. And I am assuming - that means he will pay for 3 years. Am I right???


You may have a fundamental misunderstanding of Chapter 13. If the combined household income (calculated, based upon the income from the 6 full months prior to filing) is below median for a family of your size then the commitment period is 36 months.

However, many folks cannot pay what needs to be paid within 36 months. If that is the case the Plan length can be increased from anywhere between 36 and 60 months.

So the question is not. . . "is he above or below median income"? The question is, "what needs to be paid" and, "if below median income, can he afford to pay it in 36 months"?

Des.

Sub: #6 posted on Tue, 07/31/2012 - 04:56

despritfreya despritfreya

(Posts: 170 | Credits: )

Thanks Des for so clear answer!! Yet I have anther question!! The question I have since you stated here "what needs to be paid" -- so how "to be paid" amount gets calculated ??

Sub: #7 posted on Tue, 08/21/2012 - 22:19

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Quote:
I have anther question!! The question I have since you stated here "what needs to be paid" -- so how "to be paid" amount gets calculated ??


The formula is not ???rocket science" but what I am about to state is "in general" and the only way to know what needs to be paid is to sit down and look at all of the issues in a particular case.

In general, a Chapter 13 Plan must provide for:

1. Legal fees if an attny is hired;
2. Mortgage arrears if any and the debtor is keeping the home;
3. Secured debt plus interest if the debtor is keeping the collateral such as a car;
4. Priority taxes if any are owed;
5. Back child or spousal support if there is any;
6. Something to unsecured creditors - amount depends upon value of non-exempt items and one's ability to pay;
7. Trustee???s fee - generally calculated at 10% of total to be paid but can be less.

You add up all of the above and then divide it by the number of months in the Plan and. . . there you go.

Des.

Sub: #8 posted on Tue, 08/21/2012 - 22:40

despritfreya despritfreya

(Posts: 170 | Credits: )

Thank you s much Des for the answer!

Sub: #9 posted on Thu, 08/23/2012 - 22:07

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