From 341 To The Judge

[CATCHMEIFYOUCAN]

Hi all, here are the results from my hearing after the Trustee did not confirm my original plan of 250 (he wanted 800). The judge for the Eastern District of Va did not want to make the decision to confirm a plan. Because the new laws the Congress set forth contradicts the old laws. Most cases that are coming up in Chapter 13, seems to contradict the new laws against the old laws. For example: the median test may show one has no disposable income yet the by the "old laws," schedule I and J, it shows one has disposable income. In my case I had a negative amount according the median test but schedule I and J, it showed I had way more than what was proposed "in good faith."
The judge said that we needed to modify the plan and submit to the trustee, again or take to an "appeals court," and if they won't decide, it could go to the supreme court. The case would set precedence for something if that should happen (im really dumb when it comes to BIG words, so whatever that means!). The lawyer mentioned that I work 2 full time jobs and live a very frugal lifestyle - for whatever that was worth. The judge came back and said well the choice is mind if I want to continue to work 2 full time jobs, but it is not required by law.
So I have 3 choices:
1. Modify my plan and offer $350-$500 instead of $250 to the Trustee
2. Start living a more "extravagant" lifestyle, move out into a more expensive
place (the IRS standards allow me for the State of VA $1600 a month for
rent - I'm only paying $600) eat out more! .. of course my lawyer said
doesn't make sense.
3. Just quit one job!
So plan A: wait to see if the trustee is willing to negotiate
Plan B: QUIT ONE JOB!
I told my lawyer, that will be my ultimatum, let's see if the trustee will negotiate. Deep down inside I think I should probably just quit one job and just live tight for a minute, than I can always pick up another one after the discharge, or at least a part-time.

Any opinions, thoughts, etc. are much appreciated.

By the way, I heard in the Eastern District, all the judges are pretty much sticking together on their opinions - for whatever that is worth. This new law and the median test are really throwing the the trustee and the judges for a loop! Something is going to happen sooner more than later about it, so the judge commented. My lawyer commented well why don't the judges just stick with the new law and not think to much about, case closed. Let congress and the bumbleheads figure out what they did! MBNA had a helping hand in drafting up some of that law (just what I overheard)
And Congress is updating one of their forms, I don't remember which one but instead of 1-2 pages, this form is going to be 10 pages! So just do your research on Bk, you'll see it somewhere.

Catchmeifyoucan

[FoolAndHisMoney]

Sounds like a nice judge. Judges usually don't like when a debtor intentionally elects underemployment and here you are being told to do just that. I think most judges are not happy with the new laws and they are giving those that helped change it exactly what they wanted. Maybe you should find a better place to live and some fine wine and caviar.

[anonymuse]

Just your luck--you've pulled the short straw and are a kind of "test case". But it's great that the judge is working with you and giving you options. If I were you, I'd get rid of one job. Good luck!

precedent
1. Law. a legal decision or form of proceeding serving as an authoritative rule or pattern in future similar or analogous cases.
2. any act, decision, or case that serves as a guide or justification for subsequent situations

[CATCHMEIFYOUCAN]

Thank you !

Thank you for the comments so far. I'm wondering since its been only about a month since the 341 meeting, if creditors still have objections to file? Or is that chance forfeited since no one showed up at the 341 meeting? And I'm wondering if I do decide to quit one job and change to a 7, does that start some process all over again?
My lawyer mentioned that I would not owe him any more money
He also mentioned that I could stop paying the trustee
Some posts I saw, if you convert, you would still have to pay the trustee, and they would still consider the last 6 months of your income? So what the post were indicating, I'd have to wait til my income falls below the median, which makes no sense, because if ones income changes drastically, how can one continue with the plan?

Catchmeifyoucan

[anonymuse]

When your income changes (usually more than 10% in either direction) you need to contact the trustee and amend your plan, if necessary. You don't have a finalized plan to amend yet.