Hi, my husband and I have our 341 meeting scheduled for April 29, 2010. Our payments on 95K debt is 621 for 5 years on a 10% payback plan. My question is does this percentage raise a red flag with the trustee? Are they more prone to object to a low percentage payback or does it not matter as long as we make our payments. My husband and I really feel like we can handle this payment and still start to put aside something in a savings account (which we haven't been able to do before now). I just don't want to get my hopes up and have the trustee say "no way jose". Thanks.
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I am paying back less than 1% on about 75k of unsecured debt, and my plan is confirmed. I think it is not the payback percentage that matters at all, but that you show that you are fully funding the plan with 100% of your DMI. -
Thanks tigergem for your response. It's very much appreciated.Comment
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It goes by how much DMI you are showing as to the percentage of payback.. Everyones situation is different .. If you can prove that your DMI is such then it should be fine.. The trustee is working for the creditors to get them all of your DMI ... % doesnt matter to them ..Those who live in glass houses should not throw stones
Chapter 13 filed 10-21-09
Discharged 4-13-15
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Yes, be careful because when you say that you can "manage the payment and still have money left over to set aside" it implies implicitly that you have "extra DMI" left over, which is not the point of the payment plan. The point is you are paying 100% of your DMI as I understand it.....Comment
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Sorry, double post.Comment
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When I say "some left over" we're not talking thousands or even hundreds. I'm actually talking about having possibly 50-75 dollars that can be put in savings where we haven't had ANYTHING to save before. The attorney went over all our documents and our DMI is such that our payback is 10% - no scamming inferred or intended. I just didn't know if the percentage mattered to the trustee. I was concerned because I read that some people are paying back 85%+.Comment
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Right, it might only be a little bit, but my trustee made me amend my budget when my phone bill dropped by something like $20.00 per month. So conveniently, my health insurance premium had also increased, and something else... I don't remember what. My over all budget adjustment was less than $5.00 by the time I was done. But he still wanted to see even that.Comment
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I didn't mean to imply scamming of any sort, I just know they are SUPER picky with ANY DMI left over, however unfair that may seem to all of us...sorry if you misunderstood me.Originally posted by reereeof2 View Post
BobbyComment
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No need to apologize and I wasn't being snotty. It's really hard to convey via email. I appreciate all the responses since before I found this site I was really at a lost. Thank you soooo much for the insight. At least now I can go into my 341 prepared for anything. Funny my attorney didn't even mention that there's a possibility that the trustee could possibly have objections to the filing.....Comment
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Oh yeah, absolutely. The only reason I had even mentioned at my 341 that my phone bill had decreased (because I switched to a different cell carrier after I filed) was because the Trustee had specifically questioned that expense. (Otherwise your best plan of action at the 341 is to say as little as possible.) But my cell phone bill was really high when I was under Verizon, so they questioned it. But between filing and my 341 my contract expired and I switched to a different plan. So they made me amend my budget for that. I thought it was pretty petty, but since they got nit picky, so did I. I included every single nickel and dime of change that occurred between the time of my filing and my 341.Comment
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