Confusted about Trustee calculations

[Lifeslessons]

Hello again,

I'm back with more confusing Trustee issues. I previously posted here (http://www.bkforum.com/forum/before-...-allowed-to-go) talking about my Chapter 13 Trustee requests. I filed on 13 Oct 15 and have been responding to a plethora of Trustee questions and provided a lot of questionably personal documentation. I was told yesterday, by my lawyer, that the Trustee will not approve my expenses for my dog (that I've had over 10 years and provided proof of vet bills for) nor my vehicle expenses. Unfortunately, my vehicle is a 2009 Mercedes - which costs more than average to maintain and I have provided service proof to show cost. At first I said whatever, I'll suck up the cost just to get this over with, thinking it would be less than $300/mo that I would have to make up for. However, my attorney told me that based upon some Disposable income program and the removal of these two expenses my plan payments will go up nearly $700 each month! (I will now have to pay $1660/month). To say I'm confused is an understatement considering the actual expenses were less than $300/month now I have to pay more than double because the Trustee doesn't think they are reasonable expenses? I don't understand how that works or how they can justify asking me to pay more than the actual expense cost when every dollar I make is already accounted for? Basically they are putting me in the red monthly. I asked my lawyer if we can have the judge decide vs agreeing with the Trustee's recommendation. He said the judge will always go with the Trustee so it would be a waste and that the Trustee is threatening to take another $500 expense if I don't go forward with this!! (So I'm guessing that means they would take another $1000 a month according to this disposable income calculator?) He also mentioned that there aren't many Bankruptcies being filed currently so the Trustee is scrutinizing every case to try to get more money. Awesome timing huh?

I told my lawyer I need a couple days to think this over because right now I'm leaning toward asking for dismissal. Something just isn't adding up to me and I'm at a loss? If I'm to pay this much a month to the trustee I can't help but think I may as well drop the bankruptcy and work directly with the creditors to pay them and save the money both my lawyer and Trustee are charging. I mistakenly thought filing for Chapter 13 would allow me to live on a tight budget for a few years and pay off as much of my unsecured debt as possible. I didn't think it meant I would have to rob Peter to pay Paul every month... If I have to live that way I may as well deal with the creditors directly. It's all unsecured debt and my wages cannot be garnished so I may be better off. If it helps, my total amount to be paid would be $93,528 with $77,682.70 going to the creditors.

In summary, if I don't accept the new payment plan of $1660 a month (because the two expenses of less than $300 a month cause the payment to go up another $660) then the Trustee will not approve a 3rd expense of $500/mo (and probably cause my monthly payment to go up an additional $1000). Does anyone have any insight on how this works or any advise please? Should I just shut up and color and try to figure out how I'm going to survive my next 4yr/3mo without the money I need to live? Mind you, I'm on a fixed income so it's not like I can work overtime or get another job to help offset costs. Is there anything else I can do?

Thank you in advance for anything you can offer. Even if it's just a shoulder. ;-)

[LadyInTheRed]

What you describe does not make sense. If the trustee objects to only $300 per month in expenses, then your payment should increase by $300. I suggest you sit down with your attorney and have him go over the changes with you. Don't let him blame it on a program. The math should make sense. If not, then something is being entered incorrectly or you don't understand the full story. He should be able to show you how your disposible income is being calculated.

It is not unusual for a trustee to oppose pet expenses. It's a cruel reality that not everybody considers them as necessary expenses.

Also, it is not surprising that a trustee would oppose expenses to maintain a luxury vehicle when they exceed ordinary vehicle maintenance expenses.

While your trustee's objections could be valid, I don't like your attorney's attitude that the judge will go along with the trustee, if he really means that regardless of the facts. It sounds lazy. But, if is only those two expenses, he may just know from experience that in this case the judge will agree with the trustee.

As far as dealing with your creditors, don't count on settling with all creditors and keep in mind that unless you are insolvent by IRS standards, you will pay income tax on the difference between settlement amounts and what you owed.

[Lifeslessons]

Thank you so much for your reply LadyInTheRed. While I will NEVER agree to the idea that a beloved pet isn't a reasonable expense, I can somewhat understand a Trustee saying my luxury car (that I hold title for) is not. All in all, it's not the disapproval of those expenses that has me confused... If it were just the $300 for those expenses I wouldn't even be posting this... but I can't seem to understand the doubling of the amount those expenses for my new payment.

I specifically asked my lawyer if there was something else not approved and he stated no - just those two items and possibly the third if I don't agree to my payment increasing to $1660. He said the payment went up based upon calculations from the previous 6 months and the removal of those two expenses being input into some program calculating disposable income (forgive me for not remembering the name, I was flustered). I will definitely ask him to explain this again because either I'm a serious dimwit or this really just doesn't make sense. It almost seems to me that they already did take away the $500 expense they were threatening to take but not the full amount of my vehicle or pet expenses. If I still can't see where the increased amount is derived from should I press to have the judge make the decision or would I be better off just going forward to confirmation? Even though this doesn't make sense and it's pushing me beyond my means, the idea of this part being OVER is strangely appealing.

I also appreciate the heads-up about dealing with my creditors and the possibility of paying income tax, I'm aware of it. Unfortunately I started doing research AFTER I filed and see that I probably would have had less headaches had I tried working with creditors first, only using BK as a last resort. If the Trustee takes 60% of my monthly income I really would be better off working with creditors directly so that I can afford a place to live while paying them off. If I could do it all again... I never would have got married!!!