amendment of payments to secured creditors

[wooisme]

Our objection to confirmation was "settled" so our confirmation hearing for the objection was canceled. we have enough money to fund our plan and the plan payments won't change, they will stay the same....however we need to have amended the way the secured creditors are being paid. meaning, the amount of the actual debt owed is not changed, the monthly payments we pay into the plan will not change, but the payments that the trustee makes to the secured creditors need to be a fixed amount throughout the plan.

so we have to go into the lawyers to sign this amendment.

what exactly does this mean. does this mean we have to start ALLLL over again, or does it mean when they receive this amendment they will confirm it.

again, we are not changing the creditors or their amounts owed. it has more to do with the language of the bankruptcy in how the trustee makes the secured payments.

[wooisme]

i cannot believe no one on here has ever had to do an amendment that the trustee wants in regards to method of payments that the trustee makes to the secured creditors.. not changing amounts owed and not having to have plan payments increased. does anyone know the procedure

[lrprn]

i cannot believe no one on here has ever had to do an amendment that the trustee wants in regards to method of payments that the trustee makes to the secured creditors.. not changing amounts owed and not having to have plan payments increased. does anyone know the procedure

Our Ch 13 plan still hasn't been confirmed after 11 months (2 outstanding objections remain), so I don't have a personal experience to share. However, if your monthly payment remains the same, the length of your plan isn't changing, and the only change is how the trustee is going to distribute the money you pay into the plan to your creditors, then you shouldn't lose credit for what you've paid into the plan so far - there's no starting over

Did your original plan have a sliding scale payment for certain creditors that went up or down as your plan continued over time?

[Granny]

What they are doing is changing the order in which the secureds are paid. It sounds like they are changing it from pro-rate (a percentage of each payment) to a fixed amount of each payment.

This happened in my case and it resulted in one secured creditor receiving a larger share of the pie becasue of how the whole note amortized out. It also means they won't be paid off until month 60. I was able to download a trial version of one of the BK programs. Working with the same monthly payment, I calculated that this particular creditor could be paid in full in month 37 or so and I would save several thousand in interest.

Why would the creditor want to be paid in 60 months instead of 37...increased interest and they don't believe that I will complete the plan and then they can repo the asset and be ahead that much more.

Is this what is happening in your case?

[wooisme]

well, we went to the lawyers and he said the bankruptcy turned out good. our payments stay the same, all came in as i said and it's funded. the only minor thing was to change some of the language as far as in the 13th month of the plan the payments drop down to $700 and the secured payment for roadloans. husband's truck the payments are $845 a month for 21 months and the trustee said that needed to be changed cause in the 13th month we would be paying only $700 a month. but the trustee fails to see that the money we are paying now would make up that difference. so the attorney said he would change it. we didn't have to pay to amend it since we were not changing what the payments would be in our end and not increasing the amount of months in the plan. But a change, however little is STILL a change. meaning that the one or ones affected by it get a copy of the amendment and have time to look at it and if they have an objection to it, then they have a certain time to do this. We are still looking at 45 more days here!!

Then the trustee himself can look at it again, and say ,,well, you know...this doesn't....bla bla bla.

however the trustee that WE have doesn't really do that, now the other trustee that is assigned bankruptcy cases does do this alot. So I guess we can be thankful that we have the one who rarely does this. Anyway, we had until 5/14 to file the amended plan.

I guess I can be thankful the payments on our end stay as planned and that (knock on wood) none of our creditors objected and our now past the claims bar date.

[lrprn]

So glad that everything looks like it's working out for you, wooisme! Keep us posted about how the refiling goes - hang in there!

[wooisme]

this makes no sense, I don't know who comes up with these rules, i swear....

ALL the creditors get the amended bankruptcy papers, this makes no sense because the unsecured ones are all fine and came in already. it was one secured creditor that had to be changed. why in the world should the ones not affected have a chance to take another WHACK at us! at the rate this is going, what is to stop them from filing objections to it and then we have to start over yet another 45 days.

I don't know who came up with this rule but i don't think they were thinking it through right.

after this i'm writing a book about the whole experince and the title will be:

"The Chapter 13 plan that never confirms" written by: Mary brokenhearted. The weirdo they have locked up in the nut house cause she couldn't take it anymore!