As A Chapter 13 Progresses....

[kornellred]

I read a lot about modifications to Chapter 13 plans as time goes by. Sometimes a debtor's circumstances change significantly; mostly, it seems, for the worse - in which case the payment plan obligations can no longer be met and either dismissal or conversion to Chapter 7 results. And sometimes - perhaps just as often, things get better.

And so what if they do get better? I have been unable to find any information regarding provisions for review of Chapter 13 plans on a post-confirmation basis. There are no guidelines with respect to Chapter 13 Standing Trustees responsibilities in this respect. There are no warnings or notices in the US Bankruptcy Court confirmation documentation that address possible future modifications of the plan.

It seems as though the Chapter 13 Standing Trustees can do whatever they like as far as auditing a debtor's case on an ongoing basis.

Is there anything besides individual opinion on a standing trustee's bottom-line responsibilities? I keep asking my trustee what he expects from me (besides payments) down the road. I have yet to get an answer.

[lrprn]

It seems as though the Chapter 13 Standing Trustees can do whatever they like as far as auditing a debtor's case on an ongoing basis.

Pretty much, yes. Most Ch 13 trustees request copies of your annual tax returns throughout the 13 - they review the returns as a way to check up on you generally. If there's a significant income increase (typically more than 10% but as you said, there are no guidelines), an inheritance, etc. showing over the previous year, then you may get a contact from the trustee to inquire about it in more detail. Some trustees regularly check for legal monetary awards as well. Frankly unless there is a truly large increase and you keep making your payments on time consistently, most Ch 13 trustees leave well enough alone.

Is there anything besides individual opinion on a standing trustee's bottom-line responsibilities? I keep asking my trustee what he expects from me (besides payments) down the road. I have yet to get an answer.

There's no consistency between what individual Ch 13 trustees expect from their filers. Your lawyer should know what your trustee may want because 99% of the time whatever you need to send the trustee (annual tax return, for example) goes through your lawyer.

[oldrocker]

Yeah, there is nothing consistant from district to district. Some of the things that folks have to do for the trustees while in their 13 seem a bit extreme. But, it just may seem that way to me because our district seems to be very debtor friendly.

Our trustee had handouts for everybody at our 341 detailing what he expected from us for the duration of our plan:

Inheritance, property settlements to be reported only for the first 6 months.
Income increase to be reported for the first 36 months (even if in 60 month plan) and with a new schedule I he suggests a new schedule J (hint hint).
How much new debt we can incur without his permission (5000 in our district).
and other stuff related to our plan.

It's obvious from all the questions asked here that not all trustees spell out for new filers what they expect from them as ours does, which is a shame.

As lrprn said, your lawyer should know exactly what your trustee expects from you as you go through your plan.

[Runtime Error]

Agreed with the above posters......a trustee has quite a bit of lee-way in determining how to manage the case. I've heard horror stories about some, but I think most are content to let you fly under the radar. For the most part, out trustee is the latter....we file a return every year and if there is a significant change in income, he may require a re-org of the plan and so forth. We've been in it for over two years now and not much has happened. We make payments on time and fly beneath the radar and everyone seems to be happy that way.

[Maximo]

If you are on a 100% payback that could be a difference too???

[justbroke]

If you are on a 100% payback that could be a difference too???

I've generally found, from case history and Trustee handbooks, that 70% to 99% (payback to unsecured creditors) is generally a safe area to be. A 100% plan, why should they bother you??? Makes no sense.

[MajorMike]

Our trustee doesn't request tax forms. I heard he will leave us alone until its' over. A friend of a friend is in a BK13 with the same trustee and he said he missed 3 payments and got a friendly letter asking us what the plan is to make payments. In the letter, it asked when his next payments will be made and when he expects to get caught up!
We're so lucky!!!