Filed Ch13 in Jan 2019. Has been a tough almost 5 years, but the end is in sight.
in Oct of this year, the Trustee looked at our income statements for the year and saw that my wife went from part-time to full-time in her retail job. Less than 10% increase to our earnings, and my wife has had to pay 0% to our plan - all the payments came from my earnings (I make much more than my wife).
In Nov of this year, Trustee files an amended plan, raising the repayment %, and the monthly payment amount - retroactive to Jan of this year. I ask my lawyer how this will work, he says just keep making payments as usual, they have made no other demand.
2 weeks later, Trustee moves to dismiss my case because the plan is no longer feasible - the retroactive increase in payment means we have a large delinquency. I do some math that I share with my attorney showing that between my remaining payments and my anticipated EOY bonus, the plan should still be feasible. Attorney files an objection to the Trustee’s motion. Hearing is scheduled for 12/21.
12/15, I receive my bonus, notify my attorney, and tell him I’ll submit my bonus as soon as I learn that my plan won’t be dismissed anyway. He talks to the Trustee, who responds that they are moving to again increase my payment % based on the bonus (even though projected bonuses were part of the original budget/plan), and therefore I am still in arrears. He recommends I take a loan against my 401k to clear the arrears, and submit my bonus immediately.
I’ve submitted my bonus, I’ve applied for a 401k loan…but I’m wondering what the next shoe to drop will be. We’re so close to the end of this, and if my case gets dismissed in the literal last month it will be a royal screw.
Just venting, with fingers crossed - thanks for listening!
in Oct of this year, the Trustee looked at our income statements for the year and saw that my wife went from part-time to full-time in her retail job. Less than 10% increase to our earnings, and my wife has had to pay 0% to our plan - all the payments came from my earnings (I make much more than my wife).
In Nov of this year, Trustee files an amended plan, raising the repayment %, and the monthly payment amount - retroactive to Jan of this year. I ask my lawyer how this will work, he says just keep making payments as usual, they have made no other demand.
2 weeks later, Trustee moves to dismiss my case because the plan is no longer feasible - the retroactive increase in payment means we have a large delinquency. I do some math that I share with my attorney showing that between my remaining payments and my anticipated EOY bonus, the plan should still be feasible. Attorney files an objection to the Trustee’s motion. Hearing is scheduled for 12/21.
12/15, I receive my bonus, notify my attorney, and tell him I’ll submit my bonus as soon as I learn that my plan won’t be dismissed anyway. He talks to the Trustee, who responds that they are moving to again increase my payment % based on the bonus (even though projected bonuses were part of the original budget/plan), and therefore I am still in arrears. He recommends I take a loan against my 401k to clear the arrears, and submit my bonus immediately.
I’ve submitted my bonus, I’ve applied for a 401k loan…but I’m wondering what the next shoe to drop will be. We’re so close to the end of this, and if my case gets dismissed in the literal last month it will be a royal screw.
Just venting, with fingers crossed - thanks for listening!
Bankruptcy Wizard
Comment