Good News & Hopefully More Coming Soon

[dovette7]

This has been the longest 10 months since realizing what shape we were in financially! If you have read my posts, you know we are high income filers and it's been a terrible time trying to get this plan confirmed. Court is set again for Aug 16th and we were going to argue that our payment should be based on Schedules I and J and not means test.

Cut to today: My husband is taking a new job. Much higher salary but will be gone a lot. However with new salary, we will be in a 100% plan and attorney/trustee have talked. Trustee will have no objections to anything as long as the payment comes in correct. Attorney called today and the payment they have calculated is much much less than I had calculated. So that's good news. We can also make more money during this time and be able to keep it. She said it was rare if in 100% plan we would have to raise payments with a raise in income. Trustee out of town all next week, so we should hear something after that.

I have learned to really look at all the claims and make sure they are correct and was able to find 3 that were not. ECAST settlement filed 2 "unsecured claims" on a motercycle/jetski and artwork that we were surrendering which should've been secured claims. We are filing objections to that and Georiga State Revenue filed a claim of $1500 for "estimated tax" and penalties from 2002 b/c of failure to file taxes. We didn't even live in GA that year. I Object!

Anway, today's phone call was the best news I could've heard. Like I posted previously, worse than bankruptcy is NOT being able to have bankruptcy protection.

So bad news: 401K Loan will become income at end of year since when you leave a job you have 60 days to payback loan, so we have to figure out how to pay taxes on that AND since filing with the terrible insurance we have, we know owe $8700 in medical bills...and the attorney an additional $2800.

We'll figure it out though.. hopefully I can get back to work and pay some of that off.

Keep your fingers crossed and prayers coming that Trustee gets back next Friday and all will go smoothly.
I appreciate this forum so much.

[Granny]

I'll be keeping my fingers crossed for you.

[lrprn]

Court is set again for Aug 16th and we were going to argue that our payment should be based on Schedules I and J and not means test... Keep your fingers crossed and prayers coming that Trustee gets back next Friday and all will go smoothly.

You know we are all praying and crossing everything we can for you, Dovette! Hang in there and let us know what happens after next week. We're all pulling for you!

[CATCHMEIFYOUCAN]

Means Test vs Schedules and 401k Caution

This has been the longest 10 months since realizing what shape we were in financially! If you have read my posts, you know we are high income filers and it's been a terrible time trying to get this plan confirmed. Court is set again for Aug 16th and we were going to argue that our payment should be based on Schedules I and J and not means test.

Funny how Congress created the "new law," adding the "means test," no wonder the trustee and judges are confused, because in my case my lawyer argued that payment should be made in "good faith," according to the new law based on the means test by being negative $60 (we proposed at least $250) and NOT schedules I and J.

Cut to today: My husband is taking a new job. Much higher salary but will be gone a lot. However with new salary, we will be in a 100% plan and attorney/trustee have talked. Trustee will have no objections to anything as long as the payment comes in correct. Attorney called today and the payment they have calculated is much much less than I had calculated. So that's good news. We can also make more money during this time and be able to keep it. She said it was rare if in 100% plan we would have to raise payments with a raise in income. Trustee out of town all next week, so we should hear something after that.

I have learned to really look at all the claims and make sure they are correct and was able to find 3 that were not. ECAST settlement filed 2 "unsecured claims" on a motercycle/jetski and artwork that we were surrendering which should've been secured claims. We are filing objections to that and Georiga State Revenue filed a claim of $1500 for "estimated tax" and penalties from 2002 b/c of failure to file taxes. We didn't even live in GA that year. I Object!

Anway, today's phone call was the best news I could've heard. Like I posted previously, worse than bankruptcy is NOT being able to have bankruptcy protection.

So bad news: 401K Loan will become income (you mean DEBT!) at end of year since when you leave a job you have 60 days to payback loan, so we have to figure out how to pay taxes on that AND since filing with the terrible insurance we have, we know owe $8700 in medical bills...and the attorney an additional $2800.

That sucks about your 401k Loan, how does it become income though if you still owe on a loan? When I decided to convert to from ch13 to ch7 I quit my day job - I had a $12,000 loan (in which I had already paid down to $10,000). When I filed my 2006 taxes, the little shits defaulted me on the full $12,000. So you know Uncle Sam was smiling big time! I owed the IRS close to $4000 than get a letter from them tacking on penalties and interest and late fees, since I had no way of paying my taxes all at once (I had set up a payment plan with them).

I had an additional $13,000 in savings from the 401k (besides the loan) which I was planning on getting (that would of been considered INCOME), but by the time they explained all the penalties if I took the full withdrawal I would of ended up with $2000. It was wise to roll over the $13,000 into my night jobs 401kplan.

Just be weary, if you have money coming from your 401kplan, it might be best to roll it over. I know you probably could use the money, but at the same time if you choose the withdrawal don't expect to get back as much as you think, and to top it off you'll have to pay an additional 10% or more in taxes at the end of the year for the withdrawal (just something to think about!)

We'll figure it out though.. hopefully I can get back to work and pay some of that off.

Keep your fingers crossed and prayers coming that Trustee gets back next Friday and all will go smoothly.

I appreciate this forum so much.

Just my thoughts - Best of Luck To You ! Catchmeifyoucan

[arkienurse]

[B]


I had an additional $13,000 in savings from the 401k (besides the loan) which I was planning on getting (that would of been considered INCOME), but by the time they explained all the penalties if I took the full withdrawal I would of ended up with $2000. It was wise to roll over the $13,000 into my night jobs 401kplan.

[/COLOR]

Yeah, what CMIYC said, but also....... I remember hearing or reading somewhere that when you roll over, if the check comes to you they can charge taxes on it, even if it goes into the 401k untouched. What I heard was to have the check sent directly from your old 401k to the new one, where it bypasses you completely. You might want to check into that before you do anything.

Oh, and congrats that things seem to be working out for you at last.

[nervousnellie]

Dovette
www.irs.gov Pub 17 (exceptions to penalty) some exceptions are different for Pensions and IRA's
Read carefully and see if any apply to you.
Good Luck

[SinkingFast]

With all you've been thru, I'm glad you got some good news, Dovette!!