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Post-Plan Waiting: The Slow Wheels of the Court System!

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    Post-Plan Waiting: The Slow Wheels of the Court System!

    Haven't been on here in a while, as we've been busy staying under the radar. Basically, our 60-month plan was supposed to end in February of this year, but we received a notice from the trustee last December indicating that our plan would be about $13k short. Apparently, the unsecured claims came in higher than expected, so the payback percentage was going to be lower than what was prescribed in plan. The attorney, curiously, gave us 3 options: Make 4 more monthly payments through June, pay it in a lump sum, or amend the plan. I wasn't even aware that adding more payments was possible, but my attorney explained that the trustee would simply continue banking the payments, before making a final dispersement after all the money was received.

    Anyway, we opted to amend the plan. My attorney then instructed me to make the December and January payments, but to wait on February pending the hearing for the amended plan. Unfortunately, it took until March for my attorney to file the amended plan, and the hearing didn't take place until May. We then had to wait until the trustee said "okay" to make the final payment, which took an extra 3 weeks. The payment was made 3 weeks ago, and we just now received the 1328 certifications, which we returned immediately. According to my attorney, he just completed a 13 case in which the client got the 1328 certs in mid-March, with the objection hearing (if necessary) scheduled for early July. Based on what he said, it takes about 8 weeks from receipt of the 1328 docs and the filing of the Notice of Intent to Discharge, which means another 45 days or so after that be discharged.

    So for us, we're probably looking at October before this is all over, assuming no one objects.

    It's frustrating that it takes so long, but I understand how overloaded the system is. Right now, our main focus is on nursing our cars (253,000 miles on one, 162,000 on the other, both American!) for a few more months before we can replace them.

    Now we just pray that there are no objections!

    #2
    Wow, that is slow. I received the 1328 forms within a week after the due date of my last payment. Everything went as quickly as possible after that, given the required notice periods. Sorry your court is so slow.

    I have good news! It is my undersand that the only objections that can be made at this point is to say that the 1328 certificates are inaccurate. So, don't stress about that.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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      #3
      I guess slowness is a good tradeoff for what was otherwise a very smooth bankruptcy. Never had to give up tax returns, payment stayed the same the whole time, never heard from the trustee, other than when he sent the annual reports and the deficiency letter in December.

      That is good news on the potential for objections. We did have a pretty significant IRS debt that is being discharged, and they are the only creditor we're even slightly worried about objecting. We've filed all of our returns on time, with no extensions or any funny business, but years of fighting them prior to our Chapter 13 has me very gun shy.

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        #4
        Danglin, can you let us know if the IRS comes back with a percentage that they want you to pay because of penalties?
        Part of our 13 was significant IRS debt that was being discharged. But some could not be because we filed late on some of the years.
        We're being told the IRS is allowed to continue with interest/penalties during the chapter 13 because those years that were filed late.

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          #5
          Originally posted by CtheLight View Post
          Danglin, can you let us know if the IRS comes back with a percentage that they want you to pay because of penalties?
          Part of our 13 was significant IRS debt that was being discharged. But some could not be because we filed late on some of the years.
          We're being told the IRS is allowed to continue with interest/penalties during the chapter 13 because those years that were filed late.
          For our case, there won't be any additional IRS interest and penalties due to the timeframe. My tax issues were for the 2000-2003 tax years, for which all of the returns were filed in 2004 by me, with no substitute return from the IRS. Since we filed Chapter 13 in 2011, all of the IRS is debt is dischargeable.

          Are your tax issues more recent, and did the Feds file a substitute return?

          Comment

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