Question What are common plan objections?

[Thingshappen]

Hello,

What are common plan objections? I have read that most of the time, the original plan is objected and denied.

[notreallyme]

Can't speak for others - no objection on my plan but it is a 100% plan for the unsecured.

[justbroke]

What are common plan objections? I have read that most of the time, the original plan is objected and denied.

Too hard to say. Many are boilerplate.

Nearly everyone sees at least one objection from the Trustee and/or the creditors: infeasible, not all DMI dedicated to the plan, attempt to modify rights of creditor holding lien on principal residence, Till rate issues, plan does not treat claim/creditor, 920-vehicle issues, serial filer (stay) issues, and much much more. The objections are specific to the individual plan. You have to keep thinking of the plan as a contract negotiation.

You could be one of the people that have 0 objections. You could be a debtor that has many objections, and continued configuration hearings, that your confirmation takes more than 12 months. It happens on both ends of the spectrum and in between.

[flashoflight]

This is one of those situations where you should look on PACER for other local chapter 13 cases. The trustee will probably docket everyone's objections so you can get an idea of what's common. The amended plans are also docketed so you can see how the lawyer resolved the objection.

Many of the objections sound scary like infeasibility but oftentimes it's a math mistake rather than true infeasibility. Obviously if the infeasibility is true, then it's game over for your case.

[Thingshappen]

How is feasibility defined as? Not having enough DMI to cover the plan?

[justbroke]

How is feasibility defined as? Not having enough DMI to cover the plan?

That and/or the debtor doesn't have enough income to fund the plan. Remember, DMI isn't the only thing that covers the plan. The DMI is just the disposable income left over. The plan consists of the trustee fee, attorney in-plan fees, secured debt payment, priority unsecured debt, and then the DMI. You have to add up all those things. (Albeit that the priority debt must be covered by the DMI.)

[Thingshappen]

Make sense. I think I will pass the "feasibility" test. Do potential objections usually happen during the 341 meeting or after the meeting? I am having my 341 meeting at the end of the month and I am nervous about this whole process. I must admit though that I feel peace since creditors stop calling a few weeks ago. I guess that is a win (for now).