Nervous about Confirmation

[Sixlets83]

Hi all,
I filed Ch 13 specifically to save my house from foreclosure, I am a single parent so my budget is very, very tight. My atty proposed a plan in which only my mortgage arrearages are being addressed (it's my only secured debt) & so far I have made all my payments through payroll deduction. My plan confirmation is in Jan but I'm really nervous that I won't be able to get my plan confirmed because I received a notice of objection from the trustee that my plan is not feasible because I don't have enough disposal income, I'm off by around 200$ by his calculations & he said the proposed base amount is not enough. I asked my atty before the 341 meeting about objections & he said if any objections come up he'd take care of it but I'm just nervous 😬 I don't know what can be done if the trustee doesn't think I can fund the plan. I feel like I'm dead in the water at this point 😭 or is this pretty routine & I'm stressing over nothing??

[justbroke]

You pay the Chapter 13 attorney to worry. There is so much math that goes into a Chapter 13 plan, that I take what a Chapter 13 Trustee's objection cautiously. Many plans are approved (confirmed) over the objection of the Trustee. The question is whether or not the plan is truly infeasible and sometimes that means your attorney going through it with the Trustee's office and determining what "they" see.

Some Chapter 13 Trustees think that a Chapter 13 plan shouldn't only cure arrears but provide a minimum to unsecured creditors. In some Districts, this means proposing a 10% plan even though the Means Test says you don't have any money to contribute to the plan. This is the complex math that comes into play. Your attorney will work to fashion something that the Trustee agrees with, or will go before the Judge and explain that the plan should be confirmed over the objection of the Trustee.

I ended up in a 0% plan (due to divorce) and the Trustee didn't care. They did get a portion of my 2017 and all of my 2018 tax refunds which they did give to the unsecured creditors. My plan originally only paid the IRS and my vehicles.

[Sixlets83]

Thanks for your response. My atty definitely didn't seem worried about objections but this has me a little rattled. I guess all I can do is wait at this point & see what they come back with. It just seems so final when the trustee says the plan is not feasible.

[justbroke]

It just seems so final when the trustee says the plan is not feasible.

Chapter 13 Trustees usually need nudging. My Trustee's attorney objected to my plan until I turned to the Trustee himself and said that was not the case and that they calculated the numbers wrong. He agreed that it was unusual, but agreed that I was correct in my assessment. My plan was confirmed later at that hearing on that same day. Sometimes, it's just a communication issue or misunderstanding of the numbers. The debtor can sometimes see it more clearly, but the Trustees see it from their side. It usually works out in the end. If the two sides can't agree, then go before the judge. (And yes, the judge gives the Trustee deference, but I've seen a senior debtor's attorney, in court, answering questions for the judge on the "state" of bankruptcy. That was some respect displayed by the bench.)

[Sixlets83]

I've been making my payments for 2 months so far. I'm hoping that at least shows that I'm able to make the payments & the trustee will be willing to work with us. Ugh!! This whole thing is just stressful 😥 but of course I guess that's pretty standard when going through a bankruptcy. Thanks for your response, it's definitely reassuring to know that I still have a chance to survive this 😊