Trustee cant raise payments

[otguy2003]

I spoke with my trustees office here in NY to confirm a few things as its nearly impossible to get a call back from our lawyer. The trustees office told me that once confirmed THEY can not change my payments. So how do payments get changed, plans get changed then? They said just pay your payments on time and thats really about it. It seemed to me that they arent really all that concerned with me as long as I pay on time. Thoughts?

[optimistic1]

That is a fair assumption, and it is rather amusing that they would admit to the fact.

That is pretty much what most people say on here, that once your plan is confirmed, the trustees really could care less what happens in your finances. My attorney told me that they most likely dont even look at my tax returns. They just want that monthly payment, paid on time, until your plan is over with.

[spearmint]

That is a fair assumption, and it is rather amusing that they would admit to the fact.

That is pretty much what most people say on here, that once your plan is confirmed, the trustees really could care less what happens in your finances. My attorney told me that they most likely dont even look at my tax returns. They just want that monthly payment, paid on time, until your plan is over with.

If that's the case, then it allays many of my concerns about filing. I can treat it just like a car payment without worrying what they will do if I make an extra $500 here and there.

[kornellred]

I am in New Jersey and the Chapter 13 trustee for my area/district does not require the submission of income tax returns on an ongoing basis. Therefore, there is no way for the trustee to determine if a debtor needs to have the payments increased based upon income differential as compared to the original plan filing numbers. A trustee would have to file a motion with the Court if it is felt that disposable income has increased significantly and an increase in payment amount is called for. Some Chapter 13 cases are very complicated and scheduled reviews of asset acquisition or disposition are pre-determined in the plan filing.
So, if your New York trustee does not keep track of your income and your case is relatively simple, you will never see the payment amount vary during the term of your plan.
Keep in mind that Chapter 13 trustees in the NY/NJ area are incredibly busy and they are going to get even busier as time goes on. There is a maximum income that they can earn as a trustee, so profit motive is virtually absent when seeking a payment increase - most of them are pretty much maxed out on earnings (I would imagine).

And one thing you can count on is that they will never file a motion with the Court to lower your payments on their own. The debtor would have to prove that a decrease is necessary.

[optimistic1]

If that's the case, then it allays many of my concerns about filing. I can treat it just like a car payment without worrying what they will do if I make an extra $500 here and there.

Precisely, that is how I am looking at it, my current car payment is about $365, with 3 years left on it.

My plan will consist of me cramming down that very same loan, and the rest is paid to other claims.

The result is a payment of about $365, the same as my car payment, for 36 months, and about 0% to unsecured creditors.

I couldnt be more happy.

Although, I havent actually filed a plan yet, but I am certain of the numbers, my attorney and I already ran through my budget.

[woeisme]

Most trustees won't try to go after payment changes as several on here have noted, unless they know about big changes in your circumstances, but that is not to say that a payment can never be changed. But I think that the BK Judge has the final say over everything, so maybe the trustee is saying they don't change the payments because if a change were to happen, it has to be through the judge? The trustee makes recommendations, objections, etc, which a judge would probably go by, so they have some power, just it's not the final say-so.

[EricaCallaha]

In order for them to change payments, it would be on the trustee to prove that you can pay more or the debtor that they need a lower payment. It just doesn't change because the trustee wants it to. There has to be a reason.

[debtisbad4u]

atty call backs///no such thing!

I had to make an appointment with my (jerk) attorney the other day to take 5 min of his precious time. I can't get him to call me back at all!!!! Ever! I am in Iowa, my atty is in Rock Island Illinois.

[HHM]

Legally, the Chapter 13 Trustee "CAN" change the payment amount after confirmation by filing a motion to amend your chapter 13 plan. As was previously pointed out, they would need some cause and evidence to do so.

However, it is exceedingly rare for them to do so. Even those trustees that have debtors supply tax returns each year rarely increase a persons plan payment.

The accurate answer to the question is.
"Yes, the trustee can amend the chapter 13 plan to increase the payment, but as a practical matter, they rarely do."

[jgarton244]

Trustee raised our payments. When we first filed, wife was working as a substitute teacher. About 12 months into the plan she was hired full time. This added about $16,000. annually to our income. Trustee picked up on the higher income from our tax returns. Increased our monthly payments by $800. However, he did not go after the back pay she made before he discovered the higher income.

[chucksherm]

I believe that if you are paying off secured debt in your plan, such as your mortgage payment and that changes, then the trustee would adjust your plan payment accordingly.
Chuck

[Humonese]

A guy my wife works with has been pulled back in 3 times in 3 years because he got raises at work...raised his payment every time. I'm in PA. I guess I'm just saying it can happen.

It's one of the reasons we're going for a Ch. 7, I can't deal with being shadowed for 5 years.

[chucksherm]

Have you ever heard of a case where the trustee reduced the payment amount do to a reduction in income?

[Humonese]

I've heard it on here, but not in my area of PA. I have limited experience around here though, I'm not exactly running around asking people about bk.

[broncho14]

I spoke to my attorney and he said that in my district the Trustee could care less what you did after filing and confirmation so long as you were making the payments in full and on time. The only two exceptions is if you win the lottery and then he will go after those types of winnings or if you inherit a lot of money within the first six month after confirmation. Why would they only worry about the first six months after confirmation? I got into trouble gambling so I stopped and I don't have to worry about the lottery situation.