freakin' out!

[tcauvet]

I got a letter from the trustee informing me that they have put forth a proposed plan to increase my payments by over 900 a month, which I don't have. They say my income has increased (which is true), but not by that much. I usually have about 200 or 300 extra a month. I try to save that for car repairs, since I have a old car. Just wondering if these things are set in stone, or is this just a starting point, and a least a compromise could be met. I've already talked to my attorney, and she's going to do what she can to at least stall them. I'm a little worried, because if this thing goes forward, I don't think I'll have enough to pay the bills!
Thanks

[AngelinaCat]

First of all, relax. The weekend is upon us now, and you can do nothing really. Please try not to worry--I know its hard. Ask your attorney about converting to a 7 on Monday. I haven't read any of your prior posts, so I really don't know your situation.

Wishing you my best~~~~

[busby]

Is it just me or does it seem that you get noticed from the bankruptcy court on Friday or Saturday so you can't find out anything until Monday and have a terrible weekend?

I've read several people post about a notice they received on Saturday and would worry about it until they were able to talk to their attorney on Monday.

Come to think of it - I received a notice from the court today myself! But mine was just a notice that one creditor was selling the debt to another creditor or something like that. It's nothing to worry about but - yet.

I'm sorry to hear about your proposed payment increase - please keep us posted here on what happens as it's probably something many would benefit from hearing about.

[AngelinaCat]

Hi busby, unforunately you are too correct in that assessment. Usually, if anyone is going to get a pink slip, disipline report, or any other kind of report, it is on a Friday. Rarely does anyone get any kind of good news on a Friday. I think employers or the employing agencies do this so that their personnel don't have to put up with the flak that some would raise should their notice come on, say, a Wednesday......

Just my opinion.... after it had been drug around in the mud a bit.... gggrrrrr

[13bound]

Confused...................................

First of all, relax. The weekend is upon us now, and you can do nothing really. Please try not to worry--I know its hard. Ask your attorney about converting to a 7 on Monday. I haven't read any of your prior posts, so I really don't know your situation.

Wishing you my best~~~~

why would you tell her or him about converting to chapter 7 if you don't know her situation?

[casdem1]

How did the Trustee find out about your extra income? Do you have to submit pay stubs? Thanks!

[tcauvet]

First of all, thanks for the support! They found out about the income because I was required to submit tax returns. I guess you have to do that every year. As far as the ch 7 thing goes, I don't think I can convert because my income is a little over the median income for Michigan. Plus, I had paid some money back to my Dad before the bankruptcy for a loan he gave me, and my attorney said that he would have to pay that back (it was a considerable amount) to the court. But you're right- there's no since in worrying about it, I'll just have to wait and see. I guess I feel like I'm being punished for trying to do the right thing. I mean, I'm making an attempt to pay back as much of the debt as possible, and take reponsibility for my mistakes! I guess I don't understand why they wouldn't want to work with you more on this issue. We're talking about going from 124 a week to 355 a week! That, to me, is a huge increase. Anyway, thanks again for the support!

[rrockinggramma]

are you Eastern District of Michigan? My income goes up every year and I haven't heard boo from my trustee, (Michigan)

[tcauvet]

I guess it would be considered southeastern district (Detroit). I don't know if that's the same.

[MajorMike]

They wouldn't request you pay back all that money if they didn't see the income increase by that amount. They have to explain how they came up with it before they make you pay it.

[chloe0724]

You should contact your attorney. Eventhough your income went up, if you can prove that your expenses have increased as well, they may only raise it a little. It's worth a shot. That seems like a huge increase to me. Must have been a big raise.

[justbroke]

I'm a pro se filer, and I've read so many Adversarial Proceedings, Dismissals, Objections to Confirmations, Appeals and cases, that I'm spinning right now!

In any event, Trustees normally don't go after people for additional income if it's in line with the cost of living. Generally a 3-5% annual increase is nothing. However, if you got a huge pay bump (15%+) in the year and the Trustee doesn't find out about it until the following year, they'll roll in the "difference" into your payments going forward (since it was disposable income, you should have been paying it to them)... that's how they think!

Unless you're making $100K+, as little as a $2,000 a year increase -- and no corresponding expense increase -- will cause the Trustee to want $167 more a month from you. If there was a year that passed that you were getting the additional $167/month, then the retroactive collection would be an additional $42 a month for the next 48 months (if this happened after year one).

Yeah, some Trustees are very good at collecting money. Others don't really bother people too much. Also, if you're paying your creditors less than 70% through the plan, this will also cause more scrutiny! Anyone paying 100% does not have to worry. The closer you get from 100% to 70% the more you are vulnerable to Plan modification motions from the Trustee. When you're below 70%, they're looking for pennies!

Remember, you can always Object to the Trustee's Motion, have a hearing, and state your case! Don't ignore the motion as most have a "negative notice", meaning you must Answer within so many days.

(For disclaimer: I'm not a lawyer. This mostly depends on the Trustee. All of this information is based on a lot of reading and studying of a lot of cases. I have a PACER bill of over $130.00 for just the last 30 days alone. I've read way too much.)