Objections - What does this mean?

[NewChanges4]

So I had my 341 meeting a week ago today and already knew what most of the trustee's objections would be since she stated them at the conclusion of my meeting. So when I received the official objections in the mail today I was not totally surprised. However, one thing I don't understand is this:

"The Chapter 13 Plan does not provide for the correct Applicable Commitment Period, and is not in compliance with 11 U.S.C. Sections 1325(b)(1)(B), 1325(b)(4)(B).

Can anyone translate this into layman's terms for me, please? If it makes any difference, I'm at 100% payback, 60 months.

TIA

[Pandora]

(b)

(1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan--

(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or

(B) the plan provides that all of the debtor's projected disposable income to be received in the applicable commitment period beginning on the date that the first payment is due under the plan will be applied to make payments to unsecured creditors under the plan.

(4) For purposes of this subsection, the "applicable commitment period"--

(A) subject to subparagraph (B), shall be--

(i) 3 years; or

(ii) not less than 5 years, if the current monthly income of the debtor and the debtor's spouse combined, when multiplied by 12, is not less than--

(I) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;

(II) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median family income of the applicable State for a family of the same number or fewer individuals; or

(III) in the case of a debtor in a household exceeding 4 individuals, the highest median family income of the applicable State for a family of 4 or fewer individuals, plus $525 [$575] per month for each individual in excess of 4; and

(B) may be less than 3 or 5 years, whichever is applicable under subparagraph (A), but only if the plan provides for payment in full of all allowed unsecured claims over a shorter period.


So it sounds like something wont be paid off before your plan finishes... ??

[NewChanges4]

Thanks, Pandora.

I spoke to one of the paralegal's at the practice today but she wasn't much help. She said, "It sounds like they miscalculated something." Really? You think? Genius.

At this point, I'm just waiting to see what they say next. I've provided everything that was requested though the letter misstated the amount that my husband grosses. Thankfully I sent them his paystubs for the last 3-4 months so they can see they were off by more than $300/month. Although I know it may be a long shot, I hope they tell me my payment is too high. Of course IMO, it is. But that's because I make less now than I did last year.

[NewChanges4]

So I got my letter from my attorney and one of the items they asked me to provide was proof of my grocery/food expenses for the month. I should mention that I told the attorney that prepared my case that we typically spend about $800 a month between groceries and eating out. She changed that amount to $1300 to "make the numbers work" (according to her). Now I have to prove what SHE said! What do I need to show them? I have my bank statements where we use our debit card/checks to pay for groceries and eating out but how about when we spend cash?

[Pandora]

new

You're going to have a huge issue with claiming $1300 for food for just 2 people. Your lawyer should've known better than that...its hard enough being able to claim certain things above the IRS standards when required (like extra for medical..)

Family of 2 in Georgia:


$52,024 is median income with $985 allowed for food, housekeeping, apparel, personal care, misc expenses.

So you're going to have an uphill fight to get that much allowed given thats for a family of 4. Eating out.... time to cut back on that; besides its healthier to make it at home, not to mention cheaper.

[biotechsolution]

Since you're at a 100% payback I can't imagine what they would the objection would be. You are paying 100% of 'unsecured'?? It could be that the trustee thinks you can pay it back sooner
than 60 months if you put all of your disposable income. THey may be complaining that you are devoting all of your disposable income in your current plan.

[NewChanges4]

Thanks!

We're a family of 3. When I spoke to the attorney yesterday she said to provide all the canceled checks we have for our grocery bills and copies of bank statements where we've used our debit cards for groceries, lunch, etc. I gave her 5 month's worth and we actually average about $1,100/mo just for food. Maybe slightly more. My husband's car note was left out (unintentionally) so since we're putting that in, she said that it will help my case. However, she said my payments will not go down even with a slight decrease in my pay. Go figure.

Biotech - Yes, 100% of unsecured. I cannot imagine that it can be paid back any sooner...though I wish it could be. No one wants this behind more than I do! And that is with every penny of our DMI and then some. We've made cuts to "extras" and stopped contributing to our savings in the meantime. We do need to cut more out of food expenses but that difference will go to gas now that it's $4.09 a gallon.