I'm prepping to file for a plan modification to spread my 100% plan payments over 60 months rather than 36 months. I'm using the mortgage modification, the adjustment of their claim to remove arrearages and fees as the sole basis for the modification even though there has also been a reduction in income. I was supposed to start a new job in November but the offer may be rescinded now because of my vaccine status. Ugh, the position is permanently and fully remote and they do not want to approve a medical exemption.
If I modify the plan and extend the terms, even with no income, my husband can easily make the payments and support us while I find another job. So I don't even really want to bring up the change in income as a reason, at least not at this time.
Anyway, in the beginning, and before my plan was confirmed, the Trustee filed an objection among other things, and used this as his basis: The Debtor’s Schedule J reflects a net income of $2,392.31 per month; however, Debtor’s plan proposes to pay only $1,925.00 per month thus indicating a lack of good faith pursuant to 11 U.S.C. Sections 1325(a)(3) and 11 U.S.C. Section 1325(b)(1)(B).
He was going to try and ask for interest and I opened another thread about it. It's around here somewhere. Long story short, the plan was confirmed without interest but now that I want to modify the plan, I do not want him to come back with the bad faith argument again and try for interest even though I have two very good cases to use in my argument against it, one being in 2021. So to prep for the plan modification, I was reading through emails between the Trustee and former attorney, he was going to use 1322(d)(2)(C) to support this objection and for interest. What?
I am obviously missing some context because I can't figure out how in my case, 1322(d)(2)(C) could form the basis of an objection that would support the payment of interest. Any ideas? The only thing I can come up with is he wants to use my below-median income status to force me into a 36-month plan and will use that as a basis for bad faith. That makes zero sense to force a below-median-income debtor into 36 monthly plan rather than letting her pay over 60 months when an above-median debtor has that luxury. And maybe that is why I am on a 36-month plan now instead of a 60-month that is more beneficial to me. I have no idea.
I've sent a copy of the modified plan to the Trustee, told him why I want to modify and asked him if he saw any reason to object. I have not heard back from him yet but wanted to get some opinions from you fine folks on the issue as well. Thanks in advance!
If I modify the plan and extend the terms, even with no income, my husband can easily make the payments and support us while I find another job. So I don't even really want to bring up the change in income as a reason, at least not at this time.
Anyway, in the beginning, and before my plan was confirmed, the Trustee filed an objection among other things, and used this as his basis: The Debtor’s Schedule J reflects a net income of $2,392.31 per month; however, Debtor’s plan proposes to pay only $1,925.00 per month thus indicating a lack of good faith pursuant to 11 U.S.C. Sections 1325(a)(3) and 11 U.S.C. Section 1325(b)(1)(B).
He was going to try and ask for interest and I opened another thread about it. It's around here somewhere. Long story short, the plan was confirmed without interest but now that I want to modify the plan, I do not want him to come back with the bad faith argument again and try for interest even though I have two very good cases to use in my argument against it, one being in 2021. So to prep for the plan modification, I was reading through emails between the Trustee and former attorney, he was going to use 1322(d)(2)(C) to support this objection and for interest. What?
I am obviously missing some context because I can't figure out how in my case, 1322(d)(2)(C) could form the basis of an objection that would support the payment of interest. Any ideas? The only thing I can come up with is he wants to use my below-median income status to force me into a 36-month plan and will use that as a basis for bad faith. That makes zero sense to force a below-median-income debtor into 36 monthly plan rather than letting her pay over 60 months when an above-median debtor has that luxury. And maybe that is why I am on a 36-month plan now instead of a 60-month that is more beneficial to me. I have no idea.
I've sent a copy of the modified plan to the Trustee, told him why I want to modify and asked him if he saw any reason to object. I have not heard back from him yet but wanted to get some opinions from you fine folks on the issue as well. Thanks in advance!