Bad news...HELP!!!!

[lolly78]

I called my attorney last week to find out the next steps since I paid what I thought was the 60th and last payment. He never got back to me so I called the trustee and they said I still owe $11,152.10 and have 8 months left. I re-read my plan and it does reference the following:

2. Adjustments to initial term. If the amount paid by the debtor to the trustee during the initial plan term does not permit payment of general unsecured claims as specified in Paragraphs 8 and 9 of Section E, then the debtor shall make additional monthly payments, during the maximum plan term allowed by law, sufficient to permit the specified payments.

My question is...does anyone know the maximum plan term allowed by law in the Northern District of Illinois? How can a plan go 68 months? I really don't have time or money for this to continue. I've already paid over $95000 into this. Every statement I've received from the trustee indicated that I needed to pay $95,000 so why is there now an issue?

I've called my attorney again twice and no response. I'm really at a loss here.

[justbroke]

The maximum plan duration is 60 months (period). If you made insufficient payments throughout your Chapter 13, that's a problem that your attorney could have caught and the Trustee certainly SHOULD have caught.

I would call my attorney at least four times a day and email twice a day. No response, then I would then go sit in their office until they show up. You need to fix this. Someone needs to reconcile the case and find out what happened. You may have had a balloon payment at the end, but that doesn't fix the statutory length of a Chapter 13 (11 USC 1322(d)). The maximum length of a Chapter 13 payment period is 60 months.

[lolly78]

Thanks JB, I just reviewed my plan again which was a modified plan prepared 6 months after I filed. (There was a lot of back and forth, I filed in February, not confirmed until October)

In section H line 4a it says that the Estimated total GUCs, including unsecured deficiency claims under § 506(a) $ 102,777.17, however when I add up all my claims, they total $117,946.34. I was at a 79% payback which would be $93,177.60 add in the secured and priority of $14,000, and I'm short roughly $11,000.

So I see why this is happening, but whose fault is this? My attorney really sucks. I knew it 5 years ago but I was just anxious to get this done, I guess it's catching up with me. Sigh

[justbroke]

So I see why this is happening, but whose fault is this? My attorney really sucks. I knew it 5 years ago but I was just anxious to get this done, I guess it's catching up with me. Sigh

I think it's both the fault of the Trustee, for not looking at feasibility (!), and your attorney for... not looking at feasibility.

[dmc-2008]

Omg, I would just die! I hope there is a mistake, but since you got that info from trustee office it makes me scared!!!!!

[lolly78]

It's so disheartening after all these years and all my money. Thing is had I not followed up I may have gotten dismissed because I stopped paying after the 60th payment. I was really looking forward to rebuilding our deck, repairing the roof and other things around the house that we've put off.

[justbroke]

It's so disheartening after all these years and all my money. Thing is had I not followed up I may have gotten dismissed because I stopped paying after the 60th payment. I was really looking forward to rebuilding our deck, repairing the roof and other things around the house that we've put off.

What's interesting is that in many Districts, including mine, a debtor may be able to do "necessary" repairs on a home by filing a Motion to Modify Confirmed Plan. Of course, such a modification may cause the (general) unsecured creditors to receive less, but unless an affected creditor filed an objection to the modification, the modification would be allowed.

I see putting in a new roof, or purchasing a new refrigerator as I did in my Chapter 13, as no different than a Motion to Incur debt to purchase a car. Not only did I purchase a new refrigerator, I received several HOA demands for repairs and I was allowed to have those done through plan modification. The repairs and refrigerator were over $4,000 in one year. Modification requires court approval and, yes, you may need to "fight" with the Trustee. I'll say it again that modification is available for "necessary" expenses. (Noting that rebuilding a deck may not be viewed as a "necessary" expense, while a leaky roof would like be viewed as a "necessary" expense.)

[159515951]

What's interesting is that in many Districts, including mine, a debtor may be able to do "necessary" repairs on a home by filing a Motion to Modify Confirmed Plan.

That's really interesting, and great information. I bet many/most people in active 13s don't know this -- I know I didn't.

[justbroke]

That's really interesting, and great information. I bet many/most people in active 13s don't know this -- I know I didn't.

It's typically used to incur debt for the changed circumstances. I didn't incur debt because I used an unexpected tax refund for most of the expense, as well as proceeds from a settlement on a Motion for Sanctions. It still required the Motion to Modify, getting the Trustee to agree, and then a hearing granting the motion.

[lolly78]

It's typically used to incur debt for the changed circumstances. I didn't incur debt because I used an unexpected tax refund for most of the expense, as well as proceeds from a settlement on a Motion for Sanctions. It still required the Motion to Modify, getting the Trustee to agree, and then a hearing granting the motion.

Did they require you to provide updated financial documents to modify your plan? We had a baby in 2013, so while our expenses did go up we just made due to stay under the radar until we finished the plan. I'm not sure that our current situation would even warrant a $2000 payment.

[justbroke]

No updated schedules. I was surprised, not even an updated Form B22-C ("Means Test") or a Schedule I/J. The Trustee was satisfied with the documentation.

You are right in that in some cases, it may not be worth the trouble to "poke" the Trustee. However, with a new household member comes a lot more money. The difference in housing allowance, non-mortgage/non-rent expense, and food allowance should be able to offset a bunch of income in most cases.

[spidge]

I have limited experience on this but I would say your trustee is at fault. Why? On my plan the trustee changed the payback 3 times to match the claims and our disposable income. I would ask if there is a motion to file to have the judge in your case review and rule on it. Again, I am not an attorney nor do I have extensive experience. Just thinking out loud.

[lolly78]

Thanks, I sent an email to his business and personal address last night and I'll be calling again today. I'm already up stressing about this which I don't need since I'm pregnant again. My husband asked if he needed to call but I'm trying to avoid that for now because I know it won't be pretty.

[lolly78]

Well my attorney finally responded to my email giving me generic info that I already know, apologizing for the LONG delay. Then he says that "plans sometimes, actually, often run longer than originally anticipated due to the fact that often claims come in higher than anticipated" and that he'd get back to me in a few days. That was on Wednesday. I responded and told him once they did come in higher he should have amended the plan to accommodate those claims!

Good thing is, he included his cell phone # on the e-mail so I sent a text Friday morning letting him know I need a plan to resolve this. He reviewed everything over the weekend and emailed be but he still doesn't seem to have a clue. He keeps saying that we have to pay 79% to unsecured creditors, when I keep trying to tell him that had he modified the plan way back when to include ALL creditors, it wouldn't have been a 79% payback, it would have been a 69% payback. At this point I just want to resume my payments then sue him afterwards for negligence to get my $11,000 back!!! It's so frustrating!!!

[159515951]

That's a new one -- everything I've read to this point states that a Plan can't go beyond 60 months. It can be shorter, but not longer than 60 months.