The Trustee recommends that my plan not be confirmed

[James H]

And this is what it says on the objections to confirmation-

Trustee- Debtor is not devoting all his available income to the plan. An examination of the debtor's budget shows that his income comprise 46% of the total gross income in the household. Money that is available to pay creditors total $521/ month, which includes payment for a non-filing wife's auto and credit cards. Thus, only $80/month is left for payment of the debtor's unsecured debt, although 46% of $521 would be $240/month available to pay the debtor's unsecured debt. Therefore the debtor's plan is asking his unsecured creditors be paid 7 cents on the dollar so that his non-filing spouse's creditors can be paid in full according to the terms of their contracts. The Trustee does not believe that this is a good faith plan.



Here is my question, Does it sound like the Trustee wants my wife to file also? Or does it sound like he just wants me to pay $240 a month instead of $80?

I can live on mac and Cheese and do anything else I need to in order to make the $240 but the last thing in the world I want is for my wife to have to file. I'm not the that got my self into this mess before we were even married and she is ok paying her credit cards.... that are not even that much. I really don't think it's fair to have to put her through this.

And of course I asked my lawyer and she is checking into it but as of now i have not heard anything and it's driving me crazy.


And to top it all off, my court date with the judge is this coming monday. Does the judge ever accept a case if the trustee recommends that it not be accepted? And what happens if the judge does not accept it? There is no way I can be dropped from all this and be thrown back in the pit with all my creditors is there?


Another thing, at first i tried to file for chapter 7 but we were only a couple hundred dollars over a year on the means test and so it got bumped to a chapter 13 and now on all my papers is says that converted from a chapter 7 because of abuse?????????


does that sound right? it makes it sound like I did something wrong when that is not the truth at all.

[rrockinggramma]

the trustee wants you to pay the 241 a month. He is saying that your wife who is not filing is paying off all of her creditors and you are proposing to only pay 7 cents on the dollar to your creditors. And that your income (household) is carrying the load of bill paying. So agree to the 241. Scrimp to get by and your plan will be confirmed. And you did convert because you had disposable income available,so in the trustee's eyes, you filed a chapter 7 when you really should have filed a chapter 13, and that is abuse in their eyes. (legal terms)

[325Falcon]

Have you checked your states NEW median income that took effect on 10/15? I know my states went up quite a bit. Maybe you could do a 7 now.

[James H]

ok, thank you so much

but what do I do next?

Do I have my lawyer try and work something out with the trustee or do I just go to court this monday with the $80 a month plan?

is it possible that the judge or maybe even the trustee could compromise and maybe only make me pay something like $160?

I'm really really trying to make this thing work, I've been dealing with since January and Just want it to be over

[James H]

Have you checked your states NEW median income that took effect on 10/15? I know my states went up quite a bit. Maybe you could do a 7 now.

really? I'm in NY, do you have a site that shows if it went up at all?

[325Falcon]

http://www.usdoj.gov/ust/eo/bapcpa/20071015/bci_data/median_income_table.htm

The NY state for a family of 4 is $75513

[James H]

http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

The NY state for a family of 4 is $75513

ok thanks. the problem is it's only my wife and I and we make over $52,891 so it looks like i'm sticking with the 13. I just hope this will work out.

[HHM]

the trustee wants you to pay the 241 a month. He is saying that your wife who is not filing is paying off all of her creditors and you are proposing to only pay 7 cents on the dollar to your creditors. And that your income (household) is carrying the load of bill paying. So agree to the 241. Scrimp to get by and your plan will be confirmed. And you did convert because you had disposable income available,so in the trustee's eyes, you filed a chapter 7 when you really should have filed a chapter 13, and that is abuse in their eyes. (legal terms)

That about sums it up. In a chapter 13, when only one spouse files, the other spouses income and share of household expenses are a factor. However, it might not be a "slam dunk" for the trustee to win this...so you need to discuss the issue with your lawyer...if your spouse is not filing, those creditors of hers, "may be given priority". Your non-filing spouse has a legitimate interest in paying those creditors and they are a legitimate expense

As for what to do, yes, you want your attorney to work something out with the trustee.

[James H]

That about sums it up. In a chapter 13, when only one spouse files, the other spouses income and share of household expenses are a factor. However, it might not be a "slam dunk" for the trustee to win this...so you need to discuss the issue with your lawyer...if your spouse is not filing, those creditors of hers, "may be given priority". Your non-filing spouse has a legitimate interest in paying those creditors and they are a legitimate expense

As for what to do, yes, you want your attorney to work something out with the trustee.

ok, I see what you're saying. another question, say I go to court on monday before something is worked out with the trustee what can happen?

especially if the judge agrees with the trustee?


btw- this board is great I just really wish I had found it sooner. I have been dealing with this stuff for a long time and it felt like I was all by myself.

[Granny]

so you need to discuss the issue with your lawyer...if your spouse is not filing, those creditors of hers, "may be given priority". Your non-filing spouse has a legitimate interest in paying those creditors and they are a legitimate expense

As for what to do, yes, you want your attorney to work something out with the trustee.

I tried that angle with my attorney, about still paying hubby's credit cards and she said the trustee absolutely would not allow any payments on his cards. We could take it out of the food budget, but one of the cards was too high, so we had to let the big one go. We still pay on the smaller one. It's a shame that one person filing bk will ruin the credit of non-filing spouse.

[HHM]

At the confirmation hearing, the decision by the judge is a YES or NO. The judge does NOT change the plan that is presented to him.

Thus, if the judge denies confirmation, then your chapter 13 gets dismissed. The judge may "strongly" suggest that you agree to the trustee's proposed changes...thus, you and the trustee can "write in" the changes right there in the court room and present that plan to the judge.

But if your plan goes to confirmation hearing as is, and the court sides with the trustee, and you refuse to make any changes, then your plan is denied confirmation and the chapter 13 is dismissed.

[HHM]

I tried that angle with my attorney, about still paying hubby's credit cards and she said the trustee absolutely would not allow any payments on his cards. We could take it out of the food budget, but one of the cards was too high, so we had to let the big one go. We still pay on the smaller one. It's a shame that one person filing bk will ruin the credit of non-filing spouse.

You are correct...but I just wanted to raise the issue so this person can discuss with their attorney.

[James H]

Ok so the trustee will be right in the court room with me and may be willing to make changes right then?

I've talked with my lawyer and she said she is working to try and lower the $240 but she said to still go to court on monday no matter what.

At the very worse scenario can somebody explain what happens if the judge dismisses the case? Can My lawyer just go back and just change some of the numbers around so I can try again? If not it sounds like we need this fixed right away.

and once again, after reading what the trustee said do you take it as he wants $240 a month? My wife is allowed to have a car payment right? So that will not have to pay that money also right?


this is really turning into a nightmare

[kwnancy]

Our C13 saga - before confirmation the plan we submitted was $526 per month for 36 months (old law). Trustee objected. Trustee proposed $1500 per month for 36 months. Lawyer suggested we compromise and offer $1000 per month for 36 months. Trustee accepted. Todate have paid 25,000 of the 36,000 -- 11 months to go!

[James H]

Our C13 saga - before confirmation the plan we submitted was $526 per month for 36 months (old law). Trustee objected. Trustee proposed $1500 per month for 36 months. Lawyer suggested we compromise and offer $1000 per month for 36 months. Trustee accepted. Todate have paid 25,000 of the 36,000 -- 11 months to go!

ok, that is good to know that the some trustees are willing to compromise. I hope my trustee will do the same.

I was very honest about our cost of living expenses and everything else and $240 will be tough to swing, I can make it work if I really have to but when the first emergency comes up I don't know what i'll do