341 Done Trustee Objects

[IndyNation]

Hi all,

This is kind of an update. Filed single (but am married) Chapter 13 in June, did the 341 in July, with a small amendment, and now waiting on the trustee. I am pretty sure our trustee is objecting to our plan.

My wife makes more money than I do and they basically want us to do 100%, I think. The reason I filled was due to gambling addiction, and my wife had no part in the loans/CCs I took out to feed it. Our lawyer kind of presented it as my wife should not have to pay for my mistakes.

And, almost all of my creditors came forward (over 100k). Indiana Southern District.

I dunno, thanks for reading... I have been clean for 7 months, am married still, have our house, and a job.

Thank you

[IndyNation]

Hi, If i am allowed to post this, here is the objection from the trustee and we have a court hearing in Sept.

[justbroke]

A non-filing spouse's income is counted automatically in a bankruptcy (under the Means Test). To the extent that the non-filing spouse has other bills, that money can be backed out using the marital adjustment. If the other spouse doesn't have enough to adjust every dime of their income, then that remains as available to the debtor.

In other words, Chapter 13 Trustees are much more concerned and strict when you have a non-filing spouse who a.) has any income, b.) has significant income, and c.) you try to back it all out.

Remember, that to the extent that they contribute to any household expenses, you must deduct that from any allowance that you have. Example, you are allowed $2,000/month for housing, but your spouse pays 50% of that. that reduces your housing allowance by $1,000 which is significant. (That $1,000/month is $60,000 over 5 years!)

Your lawyer is, of course, correct. Your spouse should not have to pay... but you are considered a single legal entity. That's why all the income counts despite the other spouse not filing. Your attorney will need to create an argument to adjust (via the marital adjustment) a good amount of that income. But, you will find resistance from the Chapter 13 Trustee because they really scrutinize this type of Chapter 13 (with non-filing spouse with income).

[despritfreya]

. . . I have been clean for 7 months, am married still, have our house, and a job.

And this is what is important. Everything else will fall into place.

Des.

[IndyNation]

But, you will find resistance from the Chapter 13 Trustee because they really scrutinize this type of Chapter 13 (with non-filing spouse with income).

Wow exactly what is happening, our lawyer basically said they will try to nickel and dime us until we are paying back 100%.

I thought the trustee requests would be done once we had a court date, but now they want our last home refinance, my wife's separate bank account statements, and some other documents.

[IndyNation]

And this is what is important. Everything else will fall into place.

Des.

Yes, I am very lucky for all of my family, friends, GA .....

[IndyNation]

Hi All,

Small Update, we had our first zoom hearing with an actual Judge in Sept. The Judge recommended our lawyer and the Trustee try to work out their objections to our plan and have another hearing in Oct.

That October hearing came and went without any resolution. In the meantime, the Trustee asks for proof of different expenses. and we provided them. Almost weekly, medical expenses, paystubs, you name it, we provide it.

So the next thing is an actual court hearing with a Judge and lawyers in November. Our lawyer thinks the Trustee will make an offer this month, but I don't plan on that happening.

Best and Good Luck all,