First Year of CH 13 - Need advice - Lawyer not the best

[98daffodils]

Hi Everyone!

So I am in my first year of a 5 year Ch 13 plan (it will be one year in July 2022). Ever since before the plan was confirmed, I have constantly told my lawyer that the payments are too high. I have one FT job and one PT job- and the PT job only pays when I get a contract, which isn't always every month (the PT job is a college professor, so I'm only paid when I have classes). At the time of filing, etc., I urged them not to count the second PT job, because it is not guaranteed, so no class, no pay. On top of that, I pay my ex husband a certain percentage of child care (we have 50/50 custody but I make more money, so I contribute more) and since it is a percentage, it fluctuates.

The issue now (on top of the fact the $1200 I pay is already too much, and it will go up to $1500 in the 3rd year) is that I owe federal taxes of around $7k. I claimed 0, but they combined both jobs (and the college job is less than 15K and doesn't tax much) plus they used head of household which didn't take out enough. I also could only claim one of my kids (divorce provision).

At the time of filing for bankruptcy, half of the year was gone so I didn't have time to change the filing to single for it to matter enough. Now I owe federal taxes and the IRS will not do a payment plan. So I told my lawyer we need to do something. She keeps saying trustee approves the plan to pay IRS monthly... I said ok that's great but IRS says no. HAHA seriously. I finally put my foot down and said look my plan needs to be modified because the PT college job is ending anyway and never should have been counted in the first place. And we need to add the IRS money I owe. ..... She says ok but tells me she is going on vacation for a month. WTH. Then I ask how to send my returns to trustee in the meantime (as we are all required to) and she says she doesn't do it, I need to figure that out.

So - how many know of or have done themselves - a way to change attorneys? I think she has checked out and I need this fixed.... I can't afford this and my kids are suffering as result.... plus this whole "I'm too busy" is old.

Has anyone ever encountered this?

Thanks so much!

[bornfree2]

Disclaimer: I AM NOT A LAWYER. THIS IS MY OPINION ONLY. SEEK QUALIFIED QUALIFIED LEGAL ADVICE

First, I am not a lawyer so dont take this opinion as advice. I like to research legal issues and here is what i found.

I assume you are in Virginia.

You are looking to 'substitute' counsel. Here is a law to back that up

https://law.lis.virginia.gov/vacode/...n16.1-69.32:1/

Next you can use RECAP to find out how other attorneys do this.

here is a general search for '"Substitution of counsel" "chapter 13"

Here is an example of a filing to substitute

Review the docket here

Here is an example of a judge granting it

In that particular case it appears the debtor is switching from one attorney to another and they all cooperate.

I suggest you also review the books/resources i posted in the Pro Se forum, in particular the last post. Note: that manual is primarily for chapter 7.

I know next to nothing about chapter 13...but others on here do. And would never, ever consider doing chapter 13 as Pro Se.

Wish i could help more, but thats how i would start to tackle this if it were my problem.

[justbroke]

I would not change my Chapter 13 attorney after confirmation. The Chapter 13 bankruptcy attorney makes the supermajority of their money to get you to confirmation. After that, it's mostly monitoring and dealing with minor issues. Your fee agreement should spell it out.

It could also be a little difficult to switch Chapter 13 attorneys after confirmation. Unless the attorney has left the practice or died, you'd have to convince a new attorney to take over and learn your case. They will likely charge you a premium, albeit I can't tell you how much to swap Chapter 13 attorney's post confirmation.

What would it do anyway? Most Chapter 13 attorneys do hardly anything after confirmation since the bulk of the work is getting to confirmation. Usually a debtor must provide a copy of the tax return to the Chapter 13 Trustee directly and on an annual basis. Every Chapter 13 Trustee that I know send out an annual letter reminding debtors of this requirement, and where to send the copy. (In some Chapter 13 plans, by design or allowed by the district, federal tax returns are not required.)

Now that I wrote that, let me tell you what you will likely need to do.

You will need to review your fee schedule.

You will likely need to pay your Chapter 13 attorney to modify your plan. In some cases, the fees can come from the Chapter 13 itself if there is enough in the unsecured pool (e.g. you're not in a 0% plan and have a plan that at least has some disposable monthly income (DMI) that can cover the fee).

You will need to set an appointment with the attorney to get the case modified. I don't know why the attorney didn't warn you, but having irregular income is the deathknell for Chapter 13s. A Chapter 13 required "regular" income so that the payments can be measured and assured. Having income which is seasonal or irregular makes filing a feasible plan nearly impossible.

[Carmella]

You can't have a payment plan with the IRS, but you can make voluntary payments. If you call them at the bankruptcy department, you can get more information. You can't access any info online at the IRS like your balance, but if you call you can find out. If you go to the IRS website search for the number to call the BK department.

I feel your pain with your contract job. I have a second job that varies, it's an "as needed" job. I didn't want it counted, but they have to count it as your income even if not guaranteed. During the pandemic I did not work that second job for over 1 year and it was tough on the budget. About a year ago I got called back and things are more manageable. I really do understand the frustration when the income isn't "guaranteed."

[flashoflight]

1) In my neck of the woods, a motion to modify plan is about $1200. Put it in your plan if it's not a 0% plan. Business is very slow for BK attorneys now. Most will jump at the extra work not included in the original no-look fee.

2) You should use the new tax withholding online estimator and generate the withholding form for federal. For states that still use the old withholding forms, I always do single, zero, and withhold extra. *** Fix the withholding this prior to the motion to modify. *** You need to get the tax withholding correct or you will always struggle to make your trustee payment without going on beans and rice.

3) If you're working the 2nd job for the exclusive benefit of the unsecured creditors, I'd figure out a way to get rid of it in consultation with your attorney. If you need the 2nd job just to survive the 13 and pay your secured creditors and your expenses, then don't quit. If you have a 100% plan, don't quit.