60 month plan

[klux]

I have a general question. If you are in a 60 month plan and you run into a "hardship" where you need to defer your payment for a month or something how does that work because then it would be a 61 month plan, I don't think that is allowed. I'd think you'd just have to find a way to make up the difference in the months you have remaining but I'm not certain. Anyone have experience with this. I've just started my payback, but just like everyone else, I might run into a problem a few years down the road.

[aa06a47]

As an example, some trustee's might figure your disposible income at 100/month, but your payment is actually 125/month. So, your total POT is 100 (Disposible income) x60=6000. Then take the 6000/125 = 48 months is what you would actually pay. This is an extreme example, I believe my 60 month plan will actually run 57 months (lawyer said something like that but I cannot find it anywhere in my papers). That provides a little wiggle room in the event of a hardship.

A plan is not allowed by law to go more than 60 months. You might check and see if they built any wiggle room into your plan.

[thirdtimer]

over 60 months

It is possible to go over 60 months, we filed in 6/02 and completed our plan in sept 07, we were told that we had a base amoount and it had to be paid, so once we paid the total base we were discharged in less than 2 weeks.

[tbon]

We are in a 100% payback $2345. monthly for 60 months.... half way through... we have (several times) run "short" on payments, but when I sell a house (i'm a part-time realtor), we usually catch up...
SO FAR~ our Trustee has NOT questioned us, or responded to our being late on occasion, in fact, we originally were told to pay ALL of it on the 2nd of each month....but I found that it is better to pay every two weeks 1172.50. I have started to do this and neither my attorney or Trustee has balked at it...
A few months ago, I was VERY concerned that we were NOT going to "catch up" and we called our attorney. She said something to the effect of "oh well, you're not locked in are you"? HAVE NO IDEA WHAT THAT MEANT.... husband made the call.... to which he replied "I'm not sure what that means".
She said "well, you should be okay"
"Just send us a copy of your "profit/Loss" statment for the last 6 months and we'll get back to you"...
Have heard NOTHING~ hoping to ammend our plan
We have caught up, but it runs on thin ice every month.... needless to say~ crap.... $2345. a month??
Anyway~ i'm still confused about the "locked in" comment... and no one seems to care if we are late or otherwise caught up... I have written him notes on our cashier's check before telling him we are trying desperately to "catch up"....but we get no letter or comment or calls from attorney OR Trustee....
I've tried to get on the PACER thingy, but never can find the pages where the Trustee makes comments/flags/warnings or whatever... can get on the data13 thing, but it doesn't really say much....or rather anything other than I already know... no flags....nothing~
I guess it is indeed true that it matters from state to state....
OK is too busy with people filing I guess....

[falken]

tbon,

Chances are your chapter 13 payment goes to a lockbox type setup. No one is paying any attention to anything you write on the check, or any note you include with the payment.

There is also a good chance you are not going to hear anything from the trustee until/unless they file for dismissal for non-payment. The rule of the trustee I had was she would file for dismissal when you were 2x your monthly payment amount late.
So if you had a $1000/mo payment you could send in $100 less for 19 months and not hear a word. On month number 20 however they would file for the case to be dismissed.

[tbon]

That's very interesting.... have only been one month late... and almost one month and half late.... but got caught up by my selling a listing I had...
well, we are okay at the moment....
Thanks for the input!

[falken]

I have a general question. If you are in a 60 month plan and you run into a "hardship" where you need to defer your payment for a month or something how does that work because then it would be a 61 month plan, I don't think that is allowed. I'd think you'd just have to find a way to make up the difference in the months you have remaining but I'm not certain. Anyone have experience with this. I've just started my payback, but just like everyone else, I might run into a problem a few years down the road.

Here are the options for my trustee:

The debtor will increase payments to $_________ per month for the remaining duration of the plan;

OR
The debtor will temporarily make extra payments of $_________ per month for
_______ months, provided that if a payroll deduction order is in effect, the debtor shall make the extra payments to the trustee directly and not through payroll deduction;

OR
The debtor will make a lump sum payment in the amount of $_______ on or before ____________, 20__ ;

OR
The debtor will add the suspended payment to the end of the plan, provided the duration of the plan will not exceed 60 months.

[Flamingo]

I have a general question. If you are in a 60 month plan and you run into a "hardship" where you need to defer your payment for a month or something how does that work because then it would be a 61 month plan, I don't think that is allowed. I'd think you'd just have to find a way to make up the difference in the months you have remaining but I'm not certain. Anyone have experience with this. I've just started my payback, but just like everyone else, I might run into a problem a few years down the road.

If and when you cannot make a plan payment and make it on time, call your attorney immediately. Do not just let it lapse. You would need permission not to make that payment and what the trustee may do is put it on at the end of your plan (Extending your plan by one month with that payment). With careful budgeting and saving during your plan as much as you can, you will not hit a snag but if you do, call your attorney immediately.

[rrockinggramma]

a general rule of thumb is 2 missed payments causes issues. So if you are sending in partial payments you are never 2 full payments behind. There were times when I would send in the payment plus like 1/3 of the one I missed but I never allowed the amount to total the 2 months behind amount.

[lrprn]

Bottom line is that every trustee has their own way of operating. To be absolutely certain there are no issues, unless your trustee has given specific instructions otherwise, if you are not going to be able to make a full on-time 13 payment, always check with your lawyer immediately to see how YOUR trustee handles partial or missed payments and how to handle the situation.

To not do this risks having your trustee ask the court to dismiss your 13, and no one wants to go there.

[hughthehand]

At the beginning of my BK, the trustee increased my payments by $300 a month. He also made it retroactive to the filing date of my plan. I was all of a sudden $2800 in arrears. He also filed an immediate motion to dismiss my case. The judge saw this and gave me till December(4 months) to make up the arrears plus my normal payments. He also put me on notice that if I am ever 30 days late, it will constitute an automatic dismissal of my case.

[filingin08]

Maternity Leave

I'll be on maternity leave 6-8 weeks later this year. I do not have enough paid leave accumulated for the entire time; I cannot return to work until I have a medical release; baby can't go to daycare until 6 weeks; and the BK garnishments come from my payroll. Our atty said we will file a motion to skip two months of payments and those will be added to the end of our plan. For us, we will be making 60 months of payments, just over 62 months of time. We're not in a 100% payback.